The rates imposed by Washington cause a lot of unrest: many are afraid of increasing inflation. In the meantime, the gold price has reached a new record.
In addition to the rates, geopolitical uncertainty also leads to price premiums in the precious metal. Despite diplomatic efforts, the secretary of Ukraine is not in sight and the situation in the middle is further tightened. Recently, the gold price had also benefited from the fact that the American Federal Reserve left the door for interest rates this year.
On Thursday, the price for the precious metal rose to $ 3060 (2836 euros) per (approximately 31.1 grams). Gold had recently achieved a record last week. The Troy Ounce had cost about $ 30 less in early trade.
Customs on imported car -parts
US President Donald Trump announced rates for imported cars and car parts of 25 percent on Wednesday. The EU has announced a certain answer in the case of the US detention at the Auto College. The gold, which was considered safe, benefited from the increased uncertainty. Gold is generally also sought as inflation protection.
Increase to $ 3,300 forecast
The American investment bank Goldman Sachs has meanwhile increased its prediction for the gold price. You can now expect a golden prize of $ 3,300 at the end of the year. Goldman refers to the unexpectedly high gold purchases of central banks. Emergency countries in particular want to diversify their currency reserves and make themselves more independent. According to Goldman Sachs, Gold ETFs are also very popular with investors. Gold ETFs are funds that are traded on the stock exchange and are often stored with physical gold.
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.
