The rate of gold is increasing against the background of instability in the world and trade wars
Against the background of growing instability in the world gold is a “safe haven” for investors. This year we expect growth in demand for gold, investors are once again looking for protection from the growing volatility and uncertainty in other asset classes. Hedge funds have long switched to long positions in gold. This growing demand along with continued savings long-term investors using ETFs should give gold a sufficient impetus to break up and that’s not counting the fact that the Central Bank of the Russian Federation and China are buying gold for several years.
Another positive driver for gold can be attributed to strained relations between the US and Europe and the new anti-Russian sanctions, Brexit and the still tense situation in the middle East. And it turns out for conservative investors an alternative to gold yet. Last week was marked by good growth and a break of resistance 1453$ per ounce.
A key area of resistance, in my opinion, will range between $1535 and $1560 per ounce. A good area to buy, in the short term I think the area 1427-1415.
In addition, the President of the United States Donald trump said that from September 1 introduces a duty of ten percent on goods from China worth $ 300 billion. He added that this does not include previously typed fee at the rate of 25% on Chinese goods of 250 billion dollars. And that from 1 September the fee will be 35%.
In response to Washington’s actions in Beijing from June 1 to introduced increased import duties on goods from the United States with a volume of $ 60 billion. And end to this conflict in sight, so gold will go up.