Gold gains amid political uncertainty in the United States
Gold gains amid political uncertainty in the US and fears of a global economic slowdown, which led to increased market demand for safe assets. Gold prices on Monday rose, holding positions near six-month high last week.
Partial closure of the US government almost certainly will delay the Christmas holidays after the Senate was closed on Saturday, not accepting the claim of the President of trump on the allocation of additional funds for the border wall.
Political instability of States during the recession of the world economy led to the fall of the stock market, which further increased the demand for gold. Concerns about the inversion of the curve after the rate hike, the fed caused the decline in demand and the attractiveness of the greenback as a safe haven asset.
A weaker dollar is positive for assets. denominated in other currencies, and precious metals. The weakening of the dollar encourages the participation of investors from emerging markets, especially India and China, which are the two largest importers of gold due to lower exchange rates. 24 December gold on the spot market sold for 1262.83 dollar per ounce, while futures traded even higher.
It can be assumed that investors will begin to allocate the funds for gold, given that global growth is slowing and stock markets are still not working. This is a good time for investors who stocked up on gold in the recent past, when prices were low, as it is expected that gold will resume its bullish price action in the near future. Silver moves followed gold, rising to 14.73 per ounce at the beginning of the Christmas week.
Forex broker FXOpen