The announcement of new American rates is already running the golden prize for a new of all time. And experts expect that the course of the precious metal will increase even further. An ounce had only cost about $ 2,000 a year ago.
The golden prize has risen since mid -December. During this time the value of the precious metal has risen by approximately 12 percent. The price for the precious metal also reached a maximum. Sometimes 2814.35 euros were paid for an ounce and therefore more than ever.
American trade policy worries the markets
“The last escalation in American trade policy causes uncertainty about the markets,” said noble metal trader Alexander Zurpfe from Heraeus, who explained the more demand for the “safe investment gate” gold. US President Donald Trump announced during the weekend to occupy steel and aluminum imports to the United States with rates of 25 percent. Details must be announced early this week.
According to the analyst Ricardo Evangelista of the Luxembourg Handelshaus Activtrades, the demand for the precious metal is currently increasing for two reasons: due to the concern about the possible effects of the protectoric course of the new US government on the global economy and inflation in the worldwide economy and Inflation in the US. For many investors, gold is considered an inflation protection.
Central banks block gold reserves
Heraeus -Expert Zumpe also sees a “constant question from the central banks”. Several central banks had raised their gold reserves last year to become a little more independent of the dollar as a world reserve -currency. Surpe points out that the Central Bank of China again expanded the gold reserves in January.
If geopolitical uncertainty stops and the inflation expectations increase, the precious metal could continue its upward trend. “We consider an increase in the direction of the psychologically important brand of $ 3,000 per ounce possible,” said Zurpfe.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
