On Tuesday,19th of June, the price of gold reached $1,274 per ounce.
Reciprocal import duties of the US and China can become a temporary measure for mobilizing the gold market, since the internecine conflict has not been over yet.
According to the IMF (International Monetary Fund), the $50 million import duties, imposed by the US President Donald Trump, pose a threat to the stability of the global trading system. Such an approach can provoke a response not only from the PRC, but also from other states, which will only damage the US economy.
On Wednesday, 20th of June, the price of gold was $1,268 per ounce.
Surprisingly, the fluctuations in the price of the yellow metal were largely due to the strengthening of the Dollar Index, rather than the heightening of trade tensions.
According to the news agency Reuters, the following factors influenced the current price of gold: stock market corrections and the US monetary policy tightening. The fourth unplanned increase in interest rates by the Fed has the strongest deterrent effect on the growth of industrial metals, including gold.
Commodities expert at Commerzbank Eugen Weinberg remains moderately optimistic and calls upon participants of the gold market to be more observant. The analyst notes that the precious metal market’s turmoil will soon cease to exist.
"Even in those moments when everything goes against gold, there are indirect factors that can forestall pessimism in the precious metals market."
The aforementioned factors that affect the conjuncture of the market commodities include the politicization of socially significant events.
For example, the politicization of sports is another speculative factor that supports the volatility of global currencies and the liquidity of gold.
The major sporting event of the year — the FIFA World Cup, which is held in Russia from June 14 to July 15, can degenerate into a major political scandal, which will only strengthen the position of the yellow metal. The competition has been marred by politically-motivated games, confrontations among Mexican fans, as well as doping violations.
However, the FIFA tournament caused an unprecedented interest among numismatists. The demand for investment football-themed gold coins surged ($522 for a 7,7-gram coin.)
On Thursday, 21st of June, an ounce of gold was worth $1,267.
According to the British company Capital Economics, that specializes in conducting economic research, the current lull in the gold market will be soon followed by an increase in the prices of the precious yellow metal and a purchasing power appeal.
The leading economist at Capital Economics Simona Gambarini believes that strengthening of the US protectionism, which is aimed at temporarily restricting the import of goods into the country, will positively impact the price of gold.
"The impact of the trade war between the US and China will force investors to withdraw from risky assets and turn to gold as a "safe haven" during a period of economic instability. Interest in gold will increase again. "
Experts at Capital Economics are confident that if the level of trade relations tension between the United States and China decreases, the price of the precious yellow metal will surely go up.
On Friday, 22nd of June, the price of gold was $1,269 per ounce.
Leading analysts at BlackRock, the largest US investment management corporation, are confident that gold remains the most liquid asset. They advise to keep a significant part of an investment portfolio in the precious yellow metal.
Financial experts at BlackRock believe that the global economy will recover in the coming years, bringing stability to the value of gold, so its price could remain within the current range.
Russ Koesterich, analyst at BlackRock:
"There is a good reason why gold is worth buying now. Investors need to monitor the level of inflation in the US, since this factor will be crucial for the development of the yellow precious metal market. If the inflation in America grows faster than the growth of interest rates of the Federal Reserve, then this will affect real rates and will positively impact the price of gold. "
As recently reported by Forbes magazine, a recent price drop of the precious metal with regard to the opening of the futures market in the US is a temporary measure. The purchase of gold is the most reliable way to save personal capital in times of a financial crisis.
On Monday, 25th of June, the price of the yellow metal stopped at $1,272 per ounce mark.
Gold is a valuable and scarce resource, which serves as an indicator of wealth and success. The purchase of physical gold is an effective way to protect your savings from depreciation and a reliable "safe haven" in times of financial uncertainty.
Gold is the guarantor of Financial Security and well-being, the key to stability and security.