Gold rising, investors are seeking refuge for capital
The price of gold rose on Wednesday as the dollar remained largely weak amid rising expectations that the Federal reserve will reduce interest rates next week to support economic growth.
Rising geopolitical tensions, weak economic data from the US and Europe and hopes for monetary easing from the European Central Bank prompted investors to seek safe assets.
The rising cost of gold has also been fuelled by the growing prospect of British exit from the European Union without the transaction.
The cost of the August gold futures on the London exchange, rose 1.90 dollars, or 0.13%, to 1423,60 dollars per ounce.
In geopolitical news, tensions in the middle East remains high after the us military said that the US may have shot down two Iranian UAV in the Persian Gulf last week.
Meanwhile, Iran’s President Hassan Rouhani said Wednesday that Iran is ready to negotiate over its nuclear program, but does not intend to retreat under the pretext of negotiations.
The problem of global economic growth came to the fore supporting the gold price after the IMF downgraded its forecast for this year and next, citing uncertainty surrounding trade disputes in the US and China and Brexit.
Many believe that Boris Johnson, who became Prime Minister of great Britain, will take a tough stance in the promotion of the country’s exit from the EU without an agreement.
In such circumstances, investors are forced to seek refuge assets in the near future gold will play an important role in the accumulation of capital and savings investment, and thereby growth.
Analyst of commodity markets,
Stock Markets Group