Gold prices report on February 5, 2018
1g. 33.18 EUR
1oz. 1032.00 EUR
Price in EUR per kg
Gold Fixing

News


Gold prices report on February 5, 2018
Global InterGold

Luck turns against the fans of cryptocurrency. We tell about the infinite tool of financial security - gold.

Amid bitcoin’s boom, experts acknowledge that cryptocurrency acts as an alternative to gold only for speculators. January became the month of bitcoin’s fall. Investors are backing away from further risks associated with cryptocurrency. The world’s largest banks consider gold as the basic tool of financial security.

We tell you how gold secured its positions over the past week.

On Tuesday, 30th of January, the Fed’s two-day meeting on the matter of the interest rates took place. Economists are inclined to believe that rates are not likely to change soon. As a matter of fact, their expectations were met. The first of its hikes in interest rates (three in total) is projected in March, after the assumption of Jerome Powell’s duties as the new Executive Chairman of the Fed. A doubling rate increase is planned in for the following year 2019.

On Tuesday, the price of gold was $1,338 per ounce.

On Wednesday, 31st of January, the price of the precious yellow metal steadily increased. Mark Carney, the Governor of the Bank of England, noted on the improvement of the economic situation in the UK. It was a relief for the country following the damage from Brexit, that has improved the performance of its monetary policy regime and lowered the inflation rate.

In Brussels, the decision was made on Britain’s fate: the process for the UK’s withdrawal from the EU will continue until the year 2020. Once the country leaves the EU, Trump promised trade facilitation support for the UK.

Weekle gold report

The President of the United States Donald Trump also complained about the unfair EU policy towards Washington:

"I've had a lot of problems with the EU, and it may morph into something very big from a trade standpoint".

On Wednesday, the price of gold rose to $1,345.

On Thursday, 1st of February, the market was subject to the influence following the Fed’s meeting. In a statement, made by the Federal Reserve, a low unemployment rate and an investment growth were noted. Dollar changed its positions, but the fluctuation did not affect the long-term vision of Vince Lanci, CEO of Echobay Partners. In his view, the price of gold will be worth $1,700-$1,800 per ounce.

Vince Lanci, the founder of trading and fund management company:

"In terms of a one-year price target, the behavior that we’re witnessing today is more than fine."

The price of the precious yellow metal was $1,348.

On Friday, 2nd of February, experts of NORDEA bank have published their outlook for the euro’s perspective growth. As we know, strengthening of the EU currency leads to the increase of gold prices.

Swedish bank NORDEA analysts:

"In the long-term we see a growing demand for euro."

Stock market analysts summarized the outcome of the last FED’s meeting under the direction of Janet Yellen. Economist Joseph E. Gagnon states that the politics of the Chairman of the FED has failed. Some experts believe that the actions of the Federal service could be more aggressive. Jerome Powell, who would assume the position of the Head of the Federal Reserve in March, intends to proceed with the smooth evolution of the FED. Powell has 6 years of experience, serving on the FED’s council (since 2012). Previously, he always supported J.Yellen.

Against the backdrop of U.S. employment data, the price of dollar increased. The price of gold reached $1,332 per ounce by the end of the week.

On Monday, 5th of February, the position of the U.S. currency stabilized even more shortly after salary increase data was published. The employment rate increased dramatically over the last eight years. In addition to that, economists noted the positive impact of tax breaks proposed by Trump. According to Scott Morrison, The Treasurer of Australia, changing tax legislation leads to big economic changes in the world.

Earlier in the week, the gold was worth $1,332 per ounce.

London Bullion Market Association (LBMA) reported the volume increase of gold sales at the end of the year 2017. Based on the daily data, the amount of gold sold in December has increased by 32,8%. The price of gold sold in December has grown by 30,7%, amounting to 33,8 billion dollars.

As a result, sales figures increased up to 26,8 million ounces, reaching its highest level since June 2013.

Keep track on how to increase and maintain gold reserves!

Strengthen your financial security.

VISIT THE ONLINE GOLD SHOP

Rate this article:
Published: 05.02.2018
Leave a Comment
Global InterGold
Our experts will help you learn more about GOLD
SUBSCRIBE
Global InterGold
We prepare expert reviews and forecasts of the gold market every Tuesday.

Do not forget to check your inbox!
RELATED NEWS