Gold still demonstrates a divergent trend pattern. Sharp fluctuations in the price of the yellow metal result from the increased rate of inflation in the US, the ongoing geopolitical risk and the protracted negotiation fuss.
Negotiations between the leaders of the United States and North Korea will resume at the summit in Singapore on June 12. First attempts have been made to prolong the dialogue.
Despite postponing the visit earlier, the US President Donald Trump personally confirmed the news via Twitter that the American delegation had arrived in North Korea to arrange a meeting with Kim Jong-un.
President of the United States Donald Trump:
"I truly believe that North Korea has a brilliant potential and will be a great economic and financial Nation one day. It will happen!"
On Monday, 28th of May, the US dollar began to strengthen after the temporary suspension of the imposition of trade duties on China.
Even though the European currency pushed the dollar’s value downward, the euro itself is falling steadily. The reason behind it was the decision of Italian President Sergio Mattarella to withdraw the candidacy of Paolo Savona for the position of Minister of Economy. The Italian President criticized the views of the economist and urged the parliament to oppose his "anti-European" influence.
Amid the aggravation of the political crisis in Italy, all the necessary macroeconomic conditions for the growth and further development of European gold markets have been created.
On the 28th of May, the price of gold was $1,299 per ounce.
Luis Oganes, the emerging markets research expert at the transnational bank JP Morgan, predicts a surge in the price of gold, starting from the early 2019. According to Oganes, there is every reason to believe that the price of the noble metal will rise to a new record high: $1,700 per ounce.
Luis Oganes, an analyst at JP Morgan:
"A new phase of recession in the United States is coming. During the economic downturn, the upward trend of the yellow metal is not just maintained, it accelerates. Strengthening of the dollar is only temporary, as the currencies of Japan and the Eurozone are already actively recovering. It will support the growth of gold prices in 2019."
On Tuesday, 29th of May, an ounce of gold was worth $1,298.
Experts say, that the introduction of a new gold mining technology serves as one of the beneficial factors for the precious metals market. This year’s spring, the X-ray technology for the detection of gold-bearing ores has been developed at the CSIRO research center. Soon, this revolutionary method will be used in Australia, Africa and other major gold mining countries of the world.
On Wednesday, 30th of May, the price of the yellow metal notably increased, stopping at the $1,301 an ounce mark.
The investment bank BMO Capital Markets forecasts that gold will grow by 4%, compared to its current price. Analysts of the bank admit that the price of gold can reach $1,327 per ounce in the next two weeks.
On Thursday, 31st of May, the price of an ounce of gold was $1,298.
An unprecedented demand for the investment gold has been registered in Turkey. The Swiss print media NZZ (Neue Zürcher Zeitung) linked the May gold boom to the devaluation of lira, the decrease of household incomes and the upcoming June elections of the new Turkish president.
On Monday, 4th of June, gold reached the mark of $1,293 per ounce.
A distinguished economist and business broker Peter Schiff spoke at an international forum in Vancouver, where he presented a possible scenario for the development of the gold market and the entire US economic sector in general.
Peter Schiff, President of Euro Pacific Capital Inc .:
"The situation in America is destabilized because of the budget deficit, the deficit of foreign trade and high custom duties. The growth of the economy has slowed down, especially in the banking sector, while gold is ready to start a price rally at any time. "
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