The price of gold increases together with the global demand
Gold is expensive, this is due to the fact that the international monetary Fund (IMF) had revised downwards its forecast of global GDP growth. The reason they are called global uncertainty and a trade war. And all the more it spins the flywheel of trade wars. If earlier the main participants of trade wars were the United States and China. Now it is involved and the European Union.
Washington considers imposing new duties on imports from the EU in total 11 billion dollars. The reason for these sanctions was the subsidization of Airbus, a direct competitor of the American company Boeing. As you know on March 10, 2019 Boeing 737 Max 8 crashed in Ethiopia. Then the aviation authorities of various countries imposed a ban on the use of aircraft of this type. In particular, the prohibition initiated in the airspace of Russia, great Britain, Germany, France and Austria. For the fact that trump has decided to punish Europe for 11 billion.
This uncertainty increases the demand for gold. Because gold is traditionally a safe haven asset, so concerns over global economic growth and trade support the demand for this metal.
All last week marked the rise of gold from 1284 to 1311 per Troy ounce and probably this trend will continue in the near future, gold will see the price of 1327.
Alexey Ignatenko, Analyst,