Gold hits record $4,000 an ounce as uncertainty fuels rally
As the price of gold searched for safe places to put their money on economic and political uncertainty worldwide, it broke a high record of $ 4,000 (£ 2,974) from a ounce.
Gold has seen the largest rally since the 1970s, and US President Donald Trump has increased more than 25% since April, when he announced tariffs that disrupt global trade.
Analysts are another problem that worries that there are delays in the publication of significant economic data due to the closure of the US government, which will enter the second week of investors.
Gold is seen as a secure shelter investment that is expected to maintain or increase its value during market turbulence or economic decline times.
The price of Spot Gold – the amount you bought on the valuable metal counter – the amount you bought – Asia for the first time on Wednesday morning reached $ 4,000.
The gold -term transactions, which serve as a market sensation indicator, reached the same level on October 7. Futures transactions are the purchasing or selling agreements on a predetermined date in the future.
The Singapore -based bank’s price strategist, OCBC, said Christopher Wong, the closure of the US government, which was triggered by repeated obstacles on public expenditures, was “a tail wind for gold prices”.
Investors turned to safe shelter assets such as gold in the closure of the previous US government.
Trump’s first period of the White House increased by 4% during a month’s closing.
However, if the closure ends faster than some investors expect, Gold prices may fall, Wong said Wong.
UOB Bank’s strategy Heng Koon How.
He added that the increase is also dependent on the weakened US dollar and non -professional buyers, known as retail investors.
Dear Metals Dealer and Storage Provider Silver Bullion’s founder Gregor Gregegerson said last year he saw that the number of customers was more than twice.
Retail investors, banks and wealthy families have increasingly turned gold and saw it as a protection against global economic uncertainty.
“Most of our customers have long -term owners,” Gregeren added that the majority of their customers have hidden for more than four years.
“Gold will fall at a point, but considering the economic environment, I believe it tends to rise for at least five years.” He said.
As Mr. Gregeren emphasizes, gold prices and rising.
Mr. Wong of OCBC said that if the interest rates or geopolitical tensions and political uncertainties are ease, the price may decrease.
For example, in April, Trump’s Fedge chair Jerome Powell’s firing, the price of gold fell approximately 6%, he said.
“Gold is usually seen as a fence against uncertainty, but the fence can be opened.”
And Gold’s in 2022 The US Federal Bank said, after increasing interest rates to prevent inflation triggered by the COVİD-19 epidemic, it fell from $ 2,000 to $ 1,600 in $ 1,600. Heng.
Authorized, Gold’s current rally’s key risk is a sudden resurrection in inflation, which can encourage the federal reserve to increase rates, he added.
Wong, the last climbing gold prices, the FED will reduce interest rates and make the bottom of the expectations will make the bottom more attractive, he said.
Meanwhile, Trump has increased the pressure on the FED and clearly criticized him because he did not quickly reduce Mr. Powell and tried to ignite the Fed Governor Lisa Cook.
The President’s targeting Fed ” [its] The ability to act as a reliable, inflation -targeted central bank, Mr Mr. Wong said.
In such an environment, Gold’s role against uncertainty “gained importance,” he said.
