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The price of gold has reached a record high, as demand for precious metal remains strong against the background of global economic uncertainty.
The price of Spot Gold reached $ 3,508.50 per ounce early on Tuesday, continuing its trend up, which is observed by almost one third this year.
Precious Metal is regarded as a more forthcoming asset for investors during economic uncertainty, and its price has increased earlier this year after US President Donald Trump has announced wide rates for the scope that upset global trade.
Analysts say the price has also been canceled by the expectations that the US Central Bank will reduce its basic interest rate, The transformation of gold is even more attractive for investors.
Adrian Ash, Director of Research at Bullionvault, told the BBC Today program that raising gold prices in the last few months is really reduced to Trump and “what he has done to geopolitics (s) what he did to world trade.”
“Indeed, the US election last year really set fire to him,” he said.
Analysts also cite concerns about the independence of the US Central Bank, the Federal Reserve, as another factor moving the price of gold.
Trump has started repeated attacks on Federal Reserve President Jerome Powell and has recently tried to fire one of his governors Lisa Cook.
Derren Nathan of Hargreaves Lansdown said “Trump’s attempts” attempts to undermine the independence of the Federal Reserve Bank are “stimulating updated interest rates to the assets of safe asylum, including gold.”
On Monday warn That if Trump undermines the Fed’s independence, it would be a “very serious danger” for the world economy.
She said that if the Fed is forced to respond to Trump’s policy, it will have a “very anxious” impact on economic stability in the US and therefore in the rest of the world.
G -n -Ash added that when the price of gold jumped due to the interest of investors, it was usually hardened by a delay in buying from China and India -two of the largest gold jewelry markets.
But this time he said that gold continues to find demand in China and India, since instead of leaving the market at high prices, jewelry buyers turn to buying investment gold products such as bars or coins.
