The price of gold set a high record on Friday, breaking over $ 3,000 per Troy ounce for the first time, as investors calculate the policy of President Trump’s duties, fears of a financial slowdown and a stock market.
Gold is often sought by investors as a safe refuge in times of turmoil and the price increased by about 14 % this year. On the contrary, the S&P 500 index fell on a correction on Thursday, reducing more than 10 percent last month, as FRT’s investors for Mr Trump’s financial agenda.
Market observers have upgraded their forecasts, predicting that the race has more room to run as a trade war driven by invoices entitled many of the world’s largest economies darkens the economic prospects.
US invoice rounds met quickly with retaliation from China, the European Union and Canada, causing further escalation from the White House. On Thursday, Mr Trump threatened to punish invoices in European wine, a move that hit producers and distributors on both sides of the Atlantic.
“While the general uncertainty and the deterioration of economic vibes improve the interest in gold, most of the gold prices are around the uncertainty associated with invoices,” said Helima Croft, head of the world -class basic product strategy in RBC Capital Markets.
There are also fears that invoices can be applied directly to gold imports, leading to storage in the United States. Recent commercial statistics have been distorted by a huge flow of gold from domes in London and refineries in Switzerland in the US warehouses.
Central banks around the world have also been large gold buyers in recent years, a factor that has grown more with prices. Differentiation of gold reserves, which is regarded as a worthwhile warehouse without geopolitical influence, is often described as a move to reduce dollars, American treasures and other foreign currency assets.
Eshe nelson and Bernhard Warner They contributed reports.
