Prior to the G7 summit, gold got past the price barrier of $1,300 per ounce, but already on Tuesday, 12th of June, the precious metal stopped at the $1,295 an ounce mark.
Negotiations of the G7 cannot be described as fruitful. There is still no consensus on the decision-making mechanism regarding many financial and budgetary issues. The acutest topics for discussion were the nuclear agreement with Iran, as well as the problems and consequences of climate change on the planet.
The US President Donald Trump questioned the feasibility of a number of reforms, once again labeling trade agreements with EU countries as "unfair."
Apparently, the resolution of long-standing friction between the United States and European countries may be delayed.
An increased demand for the yellow metal can be witnessed in Asian countries, especially in China, according to the World Gold Council (WGC).
China has always been a significant player in the gold market: China accounts for 30% of the world's gold reserves. In addition to non-price factors of the demand, the ever-growing popularity of gold is attributable to an increase in the incomes of the local citizens.
According to WGC analysts, the Chinese economic model is "exclusively consumption-oriented," which in turn maintains the interest of the middle class in buying both golden jewelry and investment gold.
On Wednesday, 13th of June, the price of gold was $1,299 per ounce.
According to Angel Commodities, against the backdrop of the strengthening of the dollar, the volatility of gold remains high. Analysts advise to monitor the current dynamics of gold prices. If the downward trend changes to an upward one, and the fluctuations in crude oil futures cease altogether, then an unprecedented recovery will await the global gold market.
The famous American economist and the former US Federal Reserve Chairman Alan Greenspan remains loyal to the noble metal. Despite the provocations on the part of the opposition, Greenspan ascribes the role of a defensive asset to gold.
"Gold is of great importance not only for individuals, but also for countries. Gold is the foundation of the entire financial system, whether you like it or not. If the yellow metal became a rudiment, why would Central Bank of various countries and the IMF store it in their reserves to this day?"
The Hong Kong Stock Exchange is again expanding its opportunities for gold trading. The informational web edition of Tata Crucible, owned by the Singapore Gold Association, confirms the launch of a new trading platform. The goal of the project is to facilitate the import of physical gold into China and to strengthen the yuan.
On Thursday, 14th of June, the price of gold stopped at the $1,302 per ounce mark.The report of the Singapore Bullion Market Association (SBMA) states that every family in India spends 20% of its income on the purchase of gold jewelry annually. Gold is an integral part of the life of the local population, one of the main components of its economy and culture.
According to official statistics, India represents the second largest gold market in the world. The demand among Indians for the noble metal constitutes a 25% of the annual global demand.
The Mumbai Securities and Exchange Board of India (SEBI) plans to modernize the national gold market and take the country to the leading position both in the Asian region and in the world. This year’s autumn, SEBI will launch a gold trading platform for gold and foreign exchange shares and will start trading with major exchange-traded assets, which could lead to a noticeable increase of yellow precious metals’ prices.
On Friday, 15th of June, an ounce of gold was worth $1,279.
Financial analysts at Incrementum AG Ronald Stoeferle and Mark Valek released an annual review of the situation in the market of precious metals, stating the growth of the value of gold.
"We are witnessing significant changes in the monetary policy of the Central Banks. Changes within the technology sector, where the yellow gold is actively used, will affect its price."
Incrementum AG analysts noted a factor that could significantly strengthen the position of gold. According to their authoritative opinion, the possible decline in production in the US poses a real threat to the economy of this country and its consequences remain underestimated. Yet any recession serves as a supporting factor for gold.
Mark Valek and Ronald Stoeferle:
"If the price of the precious metal gets past the $1,380 per ounce level, then a dynamic of further growth in the price of gold is expected."
On Monday, 18th of June, the price of the precious yellow metal was $1,281 per ounce.Gold is the most reliable and liquid asset that is aimed at a long-term perspective. Those who purchase gold now will be able to survive the times of economic instability smoothly and profitably.