The rate of gold by the end of the year, will return to the highs because of price wars

  • And
  • +A

Active waved sanctions from the US towards the world has led to quite unexpected consequences for them when China, Russia, Germany and other countries rushed to withdraw their gold reserves with the market for us bonds. This provoked the large-scale withdrawal of capital from the US market and demanded decisive action.
From the beginning of 2018, the Federal reserve updated its staffing and has increased the base rate to 1.75—2% per annum. There may be two or three more rate hikes before year-end. In turn, the debt relief Washington has led to an influx of speculative capital from around the world and the replacement of losses from the exit of the gold reserves. Unfortunately, the “cure” to a higher interest rate adds headaches to the U.S. Treasury,it will have to give already increased. Another feature, in the first quarter of 2018, the price of gold has repeatedly reached the level of $ 1360 per ounce.
In January—February it was linked to a major correction in the global stock markets, and in March — with the threat of trade wars and a worsening of global geopolitical tensions. But from April to the present time gold continues to fall and has already cost at least 1250 dollars per ounce.
Similar situation when market participants are in the “Treasury” of the United States, including taking money from gold, it looks strange, but its price is already stabiliziruemost as the inflow of funds into us debt, so the end of the year return to 1360 dollars will be more than likely. Further news from politics and the continued price war between the US, China and the EU will push investors back to gold, so the forecast may come true in the third quarter.
Nikolay Shiryaev
“International financial center”