George Milling-Stanley, Gold Chief Stratege at State Street Global Advisors, said the 40% Gold race in the past 12 months is still legs. Here is why.
Gold broke the price threshold of $ 3,000 for the first time on Friday while investors sparked a rally in the security asset in the middle of the president’s economic uncertainty due to the president Donald Trump tariff war.
Place gold price Hit a summit of $ 3004.86 earlier in the negotiation session on Friday before falling below $ 3,000 while the traders made profits.
Gold’s push above the historic $ 3,000 milestone was motivated by “besieged investors looking for the ultimate security assets given Trump’s tumult in stock markets,” said Tai Won, an independent metal trader.
Why could gold prices reach $ 3,000 despite volatility
The cash prices in cash exceeded the level of $ 3,000 per ounce for the first time on Friday. (Photo of Arne Dedder / DPA / AFP via Getty Images / Getty Images)
Traditionally considered as a secure value reservoir during geopolitical disorders, gold bars have increased by almost 14% so far this year, partly trained by concerns concerning the impact of Trump prices And reprisals by business partners – who have contributed to the recent market sale.
“The real managers of asset money, especially in the West, needed a solid stock market and economic slowdown Scary to return to gold – and this happens now, “Ole Hansen, head of the goods strategy in Saxo Bank, said.
Why banks fly gold bars on London commercial flights in New York
Gold is traditionally considered as an asset with a package for investors during periods of economic and geopolitical disorders. (Istock / Istock)
Gold prices have also been reinforced by the request of central banks, China strengthening its reserves for the fourth consecutive month in February.
“Central banks are continuing gold acquisitions at record level, seeking to diversify an increasingly volatile US dollar,” said Goldcore CEO David Russell.
Expectations that the Federal reserve will come back to the relaxation of its monetary policy in the coming months has also helped gold, because the traders expect the declines of interest in June, according to the CME Fedwatch tool.
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“There are good reasons why investment demand is likely to remain robust … An increased geopolitical and geo-economic risk, higher inflation expectations, potentially lower rates and the uncertainty that markets feel,” said Juan Carlos Artigas, world research manager at World Gold Council.
Reuters contributed to this report.
