Active growth in the price of yellow metal is the leading trend in recent months. According to analysts, its value has increased by 20% since the beginning of the year, breaking the mark of $1,500 per 1 ounce. Experts believe that the concern about the escalation of the trade conflict between the United States and China is the reason for this.
If the global economic situation worsens and macroeconomic indicators decline, investors "run" into gold, preferring it to other safe assets. The precious metal is also supported by a reduction in interest rates by the US Federal Reserve. At the same time, investors are actively acquiring not only physical gold but also shares of "gold" ETF funds, which are backed by the yellow metal. What interests them are papers of gold mining companies such as Barrick Gold.
Wall Street currency strategists expect the gold price rally to continue. Therefore, the $1,600 per ounce bar will be overcome sooner or later. Most investors are concerned about the state of the global economy and the financial system, hence, precious metals are becoming very much in demand as a safe haven asset. It is with the help of gold that market participants seek to preserve their capital.
According to analysts, the probability of overcoming the mark of $1,600 per 1 troy ounce is very high as a new uptrend has formed in the gold market. Experts believe that we are on the verge of forming another bull market. Deutsche Bank experts are confident that the purchase of gold from leading regulators will be one of the main supporting factors for the yellow metal. Central banks seek to diversify the international reserves of their countries in order to minimize risks in the event of a crisis. In the short term, support for gold prices will have the activity of private investors and traders and the policy of world regulators in the long term, experts say.
