Reasons for withdrawal of investors in defensive assets associated with the uncertainty of the epidemiological situation, continued weak monetary and fiscal policy, and inflationary expectations.
The price of gold has updated a historical record, reaching 1943,93 dollars per Troy ounce. A multi-year high updated and other precious metals: silver, platinum and palladium.
Krost price nasolot cited geopolitical tensions between the U.S. citaam, the weakening of the dollar opasenia about that, VOSSTANOVITEL the world economy.Корреспондент.net tells details.
Like expensive precious metals
The price of gold on the spot market on Monday, July 27, reached 1943,93 dollars per Troy ounce. The previous record was set on 6 September 2011, when quotations reached $ 1,920 per ounce.
At the close of last week the precious metal has risen by 2.3 percent, and in six days of steady growth, the price rose by 7.5 percent. This is the second time the international price of gold broke above 1900 dollars per ounce.
Since the beginning of the year, the price of gold rose by 25 percent, the highest growth rate over the decade. Gold has become the most profitable investment of the year, beating even the Nasdaq which has scored just over 15 percent.
Increased in price and other precious metals. Compared with close of last week silver added in price by 7.1 percent, reaching 24,26 USD per ounce — the highest since September 2013.
Increased price of platinum (3.4 percent, to 945 dollars per ounce) and palladium (2.7 percent, to 2279,28 dollars per ounce). In six days, metals rose by 13 to 26 percent.
Causes of the escape of investors to gold
Negative interest rates (now for him are the bonds of 14 trillion dollars), weak dollar, fears about economic consequences of a pandemic, the escalation between Beijing and Washington — the causes of the current rise in prices of precious metals.
The final impetus for growth of cost of gold began worrying economic news from the U.S. dollar index (the dollar against six major currencies) fell to its lowest level since September 2018-to the level of 93,84 points.
The recovery of the U.S. labor market is slowing. The number of weekly registrations of unemployed in the U.S. is growing again. All of this is probably due to the rapid growth of new cases of infection with coronavirus, and received in response measures.
In addition,precious metals are always sensitive to the quantitative easing of the Federal reserve system of the United States that in 2020, in fact, plans to print dollars at 10-20 percent of the U.S. GDP, in order to support the effective demand of households and the creditworthiness of enterprises.
“A powerful tool”. New offensive trump on China
As for the tension between the US and China, the press is already writing about the cold war between the two countries. Last week in Houston was closed to the Chinese Consulate on behalf of the government of the United States. Chinese diplomats accused of espionage and theft of intellectual property.
On Saturday, Chinese authorities closed the American Embassy in the city of Chengdu. The worsening of relations has occurred for several reasons: conflicts over trade and coronavirus pandemic, the undermining of Hong Kong’s autonomy, the recognition of Singaporean spying for China on terrritorii USA.
Experts predict further growth
The unprecedented rise of gold may continue. In the largest Swiss financial holding UBS think that the Sep quotes can cross the mark of two thousand dollars.
In turn, analysts of Bank of America revised April forecast of up to three thousand dollars a year and a half.
Rui Qiang, chief market strategist at the world gold Council and head of the research Department, July 25, at the “Seminar poranku gold waipahu big change”, said that the uncertainty of the global economy second half of the year will be to encourage investment Ingold, writes Xinhua.
He urged to correctly understand the strategic investment value of gold. The statement that “gold can work well only periodi high inflation” and “gold is only suitable lakridserne tactical investment,” is incorrect.
In fact, poresku diversified nature of the gold helps to mitigate the volatility of the investment portfolio, arenok gold has high liquidity, he said.
American Forbes writes that the rise in gold prices to record highs remains the General trend, so may be close to around two thousand dollars.