Raw materials. In the fields, the ears of wheat take on a beautiful golden hue. Harvest time is approaching. Will the early harvest be fruitful? It is still too early to say, even if 2020 should not, a priori, be inscribed in the cereal annals by checking the columns “disaster” or “historic record”. Falling areas, average yield, even mediocre, but fair prices underpin the scenario of the agricultural film being filmed. In a first trailer, broadcast Thursday, June 25, Brussels estimated French production of common wheat at 30.3 million tonnes, down 20% compared to that, bloated, of 2019.
In the meantime, there is another way of making wheat, ringing and stumbling. By accumulating ingots, sovereigns or other napoleons. Gold is once again shining brightly in the eyes of speculators. To the point of igniting on the stock market and close to historic thresholds. Some already imagine it passing the milestone of 1,800 dollars (1,600 euros) an ounce after having grazed this bar during the session, Wednesday, June 24, before withdrawing. A level he had not reached in seven years.
Imagine. In early 2019, the precious metal hoarders became impatient. The course of their fetish value looked like a flat encephalogram. It was trading around $ 1,250 an ounce. Suddenly, a year ago, when the sun was shooting its first summer rays, the gold came out of its torpor. Since then, the breath of speculation has heated its stock price.
Volatile markets
The ranting of the President of the United States, Donald Trump, and the multiple geopolitical tensions agitating the planet do not alone explain the return in grace of this raw material, inevitably qualified as “safe haven”. The fall in interest rates and the precious metal purchases by central banks anxious to increase their reserves also help to restore its luster.
Above all, the pandemic blew on the embers and boiled the precious metal. Moreover, the appearance of new sources of contamination in recent days – which suggests the risk of a revival of Covid-19 in deconfinite countries – has fueled its recent progression. The massive injection of money by central banks and governments around the world to support the economic system shattered by the health crisis is boosting stock prices and benefiting gold. Investors spread the risk and count on the money flowing in their pockets.
You have 15.19% of this article to read. The suite is reserved for subscribers.
–
