Gold prices report on July 2, 2018
1g. 33.02 EUR
1oz. 1027.00 EUR
Price in EUR per kg
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Gold prices report on July 2, 2018
Global InterGold

 

The week began with the fall of the dollar, affected by reports on Washington's trading position.

Relations between the US and China have escalated to such an extent that stock market index collapsed: the Dow Jones index fell by 1.04%.

On Monday, 25th of June, the US Secretary of the Treasury Steven Mnuchin disputed the "fake news" regarding the trade restrictions. He clarified on Twitter that the statement of the head of the US state about trade restrictions will affect those who attempt to steal the technology.

In the photo: Steven Terner Mnuchin – a banker, film producer, holds the position of US Secretary of the Treasury since February 3, 2017.

Statements that were made by leading politicians could not go unnoticed. CEO of Goldman Sachs Asset Management International Sheila Patel noted that she witnessed market turmoil and confusion. All this contributes to the summoning of a particular caution during the trade war period.

On Monday, 25th of June, the price of gold reached $1,265 per ounce.

On Tuesday, 26th of June, Donald Trump had a strong reaction to the decision of the world-famous company Harley-Davidson USA to move its manufacture to Europe. According to the American President, the famous motorcycle manufacturer "waved the white flag." However, the leading manufacturer of the legendary bikes has an excuse: the average price of Harley in Europe grew by $2,200, and the company's losses amount up to $100 million per year. The construction of the plant in Europe will allow the manufacturer of motorcycles to skip paying tariffs on sales in the European Union, paying taxes to the European Treasury only, which is much more profitable.

In the photo: The America's Legend intends to leave the country and avoid the subsequent increase in prices.

On Tuesday, the price of gold was $1,259 per ounce.

On Wednesday, 27th of June, the situation on the financial markets changed due to the adoption of a draft legislation on tightening investment rules by the US House of Representatives. A certain surge of unrest was registered due to the ban on the purchase of crude oil in Iran. Such a decision, made by the US, caused a sharp rise in crude oil prices.

Analysts of Eurasia Group (the global leader in the analysis of political risks and consulting) noted:

"It is unlikely that the US will be able to freeze sales of Iranian raw materials ... but we are inclined to believe that nearly 700,000 barrels of Iranian oil per day will leave the market by November, which will serve as an additional supporting factor for stock quotes."

Since the dollar's positions are directly related to crude oil prices, the mid-week price of an ounce of gold has been adjusted and stopped at the $1,252 mark.

On Thursday, 28th of June, the President and CEO of the Federal Reserve Bank of St. Louis James Bullard said that he was against accelerating the increase of interest rates. According to the expert, this step will cause unnecessary risks and slow the growth of the US economy.

In the photo: Head of the Federal Reserve Bank of St. Louis James Bullard is an Honorary Professor of Economics at the University of Washington in St. Louis.

On Thursday, the price of gold amounted to $1,248 per ounce.

On Friday, 29th of June, there was a revival in the stock markets. This is due to the fact that China has eased restrictions on foreign investments, and 28 leaders of the EU have finally reached an agreement on migrants. The result of the negotiations in Brussels is an agreement on the migration crisis, which has affected the growth of the European currency.

Gold was worth $1,253 per ounce.

On Monday, 2nd of July, the price of the yellow metal was $1,249 per ounce. Commerzbank analysts predict a further rise in gold prices. According to experts, the rise of the yellow metal is possible already in the second half of this year. Everything that happened to gold in the early 2018 has been considered by experts as a temporary failure. In 2019, gold will regain its brilliance. The most important reasons for the positive dynamics of the precious metal will be the continuation of the trade war, political instability, the situation in Iran and the possible collapse of stock markets.

 

Gold serves as a guarantee of financial security amidst trade wars and political instability.

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Published: 02.07.2018
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