This year, demand for gold has been changing all the time. However, the price has been advancing despite the low demand. According to the report prepared by the World Gold Council, this tendency will remain in the short term.
Numerous factors, including the negative ones, have been pushing oil prices higher. At the beginning of the year, gold price was hovering slightly above $1,500 per troy ounce. In the second quarter, gold jumped to $1,700 per troy ounce. In the third quarter, the precious metal skyrocketed by 16% compared to the previous quarter and by 32% compared to the beginning of 2020. In August, gold managed to break the level of $2,000 per troy ounce.
After the news about successful vaccine trials performed by western companies, gold prices inched down. Some analysts were sure that gold stopped its rally. However, now, gold has all chances to resume gaining in value. Notably, earlier, the precious metal rose amid investors’ concerns. At the moment, it climbs due to the weakness of the US dollar and other currencies. Judging by the price dynamics, one can conclude that it is not gold that is getting more expensive, but currencies that are depreciating.
Market participants faced the paradox when prices began rising amid the demand that was dropping more and more every quarter. What is more, gold prices hit their record highs just after the gold market supply began recovering. Economists expected a slide. However, the price is likely to go on moving up.
