Gold gathers sheen as the precious metal prices spike up.
The yellow metal has been rallying since May 30. With the yield debt growing negatively, the gold price has been rising constantly. With the global economic slowdown, gold has been the safe haven that investors are resorting to.
In fact, prices are up by almost 12.87 percent from the end of May.
The dollar index has been down by almost -1.85 percent this month. This has also brought a spurt in prices of gold.
The trade war is said to be the chief cause for the slowdown in the economy in recent times. The Fed has now decided to make changes in the monetary policy to bring in stimulus into the economy.
Analysts expect the Fed to cut down interest rates by at least 25 basis points. In fact, some expect a 50 basis point cut. However, shareholders are still watching the Fed movement.
Once the strong resistance at $1,350 per ounce was broken on the upside, gold has been rising steadily to 1,400. The monetary policy expected from the Fed is the chief driver of gold prices. This has brought a sharp increase of 7.29 percent, which has brought gold prices to $1,430. If the current scenario continues, gold is expected to touch $1,550 very soon.
The negative yield debt is another factor that has brought up gold prices, as investors have rushed to gold, considering it a safer investment. There is a positive correlation seen between the negative-yield debt and gold prices.
The sanctions imposed by the U.S. on Iran have also brought in a geopolitical uncertainty with the conflict e escalating between the two countries.
At the G-20 meeting, it is expected that President Trump will be meeting his counterpart President Xi Jinping to talk on trade issues. If the talks end positively, gold prices may stabilize and the economy may see a turning point.
At E-Industry News, Connie Fuller is known as a tech-savvy personality. Along with a Master’s degree in Information Technology, she holds an in-depth understanding of the trending and present technologies across the world. This knowledge makes Connie one of the best content writers in this sector. At E-Industry News, Connie presents up-to-the-minute launches, discoveries, trending gadgets from the sector of Technology. Also, she is an excellent blogger with an ability to introduce common population with novel crunches from the global tech world.