The price of gold exceeds $ 1,500 per ounce for the first time in 6 years
The price of an ounce of gold has exceeded $ 1,500 for the first time since 2013, due to increased demand fueled by concerns about the escalation of the US-China trade war, and expectations about the smoothing of monetary policy from the main central banks of the world.
Gold has traded at the level of $ 1,503.3 per ounce after 1.3% growth this day on the Comex New York stock exchange. So far this year, metal has jumped 17%.
Belonging to the category of safe assets, gold is becoming more expensive amid a collapse of international stock exchanges, led by Washington’s threat to impose new tariffs on the importation of Chinese goods and Beijing’s promises of a symmetrical response to Such protectionist measures.
Also, the US Central Bank – the Federal Reserve System – has reduced the basic rate in recent weeks, while the European Central Bank and the Bank of Japan have indicated their willingness to carry out such a measure.
This Wednesday the central banks of India and New Zealand have lowered rates more dramatically than expected.
The reduction of interest rates increases the attractiveness of precious metals as an investment tool.
“Gold plays a traditional role of protective asset,” Wayne Gordon, executive director for raw materials and currencies at UBS Group, told Bloomberg. According to the expert, gold could cost $ 1,600 per ounce in case of an escalation of the commercial war between Washington and Beijing.