More political uncertainty around the Brexit negotiations and general elections in the UK caused the world's stock markets to rally on June 13th. As a result, gold prices dropped in all major currencies to $1,262 per ounce.
The next day, Wednesday 14th, the US Federal Reserve made its decision public: to raise interest rates in spite of a weaker-than-expected economic data in June. The US dollar fell then, and gold prices rose to $1,277 per ounce. In the face of these facts, the German financial group Commerzbank's analysts forecasted that “investment demand will increase as political uncertainty will remain high.”
On Thursday 15th, the raise of US interest rates made the world's stock markets fall as well as gold prices in all major currencies again, touching $1,254 per ounce, quite a difference from the previous day.
Both before and after the weekend, gold prices were little changed. On Friday 16th, the price of gold went down to $1,252 per ounce together with industrial and energy commodities. In contrast, the world's stock markets rallied once more that week.
On Monday 19th, gold prices fell slightly to $1,250 an ounce while the US dollar held firm and the market expectant ahead of some comments by an influential official from the Federal Reserve in relation to that week's weak economic data. However, several experts from different institutions shed some light on the situation. The Australian bank ANZ stood out:
“We see gold holding above $1,250 in the short term. Safe-haven buying has supported gold prices over the past six months, and rising geopolitical risks – particularly in the US – are likely to propel prices even higher.”
Daniel Hynes, commodity strategist at the Australian bank ANZ
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