Gold prices report on August 6, 2018
1g. 33.31 EUR
1oz. 1036.00 EUR
Price in EUR per kg
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Gold prices report on August 6, 2018
Global InterGold

 

The stock market looks shaky, and any slight movement could provide additional support for gold prices in August.

Eric Sprott, a billionaire, precious metals investor and founder of Sprott Inc is optimistic about the precious yellow metal in the last month of the summer. In his opinion, gold remains in a very high demand, so now it's time to "shake" the market and wrap up all the "boring" months.

Director of Digital Asset Strategy of VanEck Associates Corp Gabor Gurbacs acknowledges the rise and fall of the yellow metal. According to the analyst, investors' preferences remain unchanged: they choose gold. It is explained by the fact that gold does not lose the position of the safest asset in times of financial volatility.

In the photo: Gabor Gurbacs, Director of Digital Asset Strategy of VanEck / MVIS. In his interview to CNBC, he noted that the current capitalized value of gold reached nearly $7 trillion.

 

On Tuesday, 31st of July, economists noted that inflationary pressure keeps the Federal Reserve from aggressive monetary policy tightening. The sequence of Fed’s actions will entail a weakening of the US dollar at the end of the year and support the price of gold.

The focus of attention over the coming period - the meetings of central banks of the United States, Japan and England. The Bank of Japan promised to maintain a "soft" monetary policy and did not raise interest rates. Experts expect that the Bank of England will take tough measures to raise rates. In the run-up to the meeting of the Federal Open Market Committee (FOMC), the price of gold on Tuesday was $1,224 per ounce.

 

On Wednesday, gold market experts say that August began with direct pressure on the yellow metal. However, despite the minimum price level of the precious metal, some companies are trying to increase their gold reserves. For example, PRO Aurum GmbH and Degussa Goldhandel GmbH from Germany increased the purchase of gold bars and coins.

On Wednesday, the White House made suggestions about a new rise in tariffs for imports from China. Exerted pressure on Beijing and Open Market Committee (FOMC) voting contributed to the growth of the US currency.

On the 1st of August, the price of an ounce of gold on was $1,216.

 

On Thursday, 2nd of August, the situation on the market has been influenced by the Fed's statement. Members of the Committee commended the economic activity as strong, noting the investment growth and the level of population’s employment. The US President Donald Trump had previously expressed his opposition to the Fed's actions, however his critical remarks were not taken into account. Analysts have spoken again about the raise of interest rates in September and December this year.

On Thursday, the price of an ounce of the precious yellow metal was $1,208.

 

On Friday, 3rd of August, Chief Marketing Analyst at Asbury Research John Kosar explained that a thriving US economy, rising interest rates and bond yields would help maintain the US dollar.

The dollar has kept stable positions due to an increase in tension between the US and China. According to the representatives of the Chinese Ministry of Commerce, America has chosen a two-faced approach to the resolution of trade issues. On the one hand, Trump threatens to increase import duties, and on the other hand, the White House advocates for the continuation of peaceful negotiations.

Photo: The market is scared of the war's escalation between the two largest states: China and the United States.

On Friday, the price of the yellow metal was $1,212 an ounce.

On Monday morning, 6th of August, the price of an ounce of gold was $1,213.

 

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Published: 06.08.2018
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