As it is already known, the leaders of European countries must provide a common vision of the Eurozone. At the EU summit, not only economic and defense policy issues will be discussed, but also the principles of the European Union.
The Chancellor of Germany Angela Merkel:
"It will be difficult to stabilize every aspect of the Eurozone over the next 20 years, but we can clarify some points about what the next steps might be."
On Tuesday, 13th of March, the market situation was affected by the consequences of the so-called trade war that might happen because of tariffs for steel and aluminum. It should be reminded that the US President Donald Trump insists on imposing a 25% import duty on steel and a 10% import duty on aluminum to strengthen national security.
At the conference in Dillingen (Germany), the first Vice-President of the EU Commission Frans Timmermans, said that European steel can't pose a threat to America. If tariffs are imposed, the issue of countermeasures would be raised, in accordance with the rules of the World Trade Organization.
The price of an ounce of gold was $1,326.
The price of the precious metal depends from the tension in the market.
In the period of instability and uncertainty, a gold price increase can be witnessed.
On Wednesday, 14th of March, a weakening of the dollar unfolded against the backdrop of a sudden dismissal of the Secretary of State Rex Tillerson. The US President Donald Trump explained his decision to replace Rex Tillerson with Mike Pompeo owing to a lack of agreement on key issues.
On Wednesday, the price of gold has been determined by the US Consumer Inflation report and the speech of the ECB Head Mario Draghi.
While in Frankfurt, the President of the European Central Bank Mario Draghi stated that the ECB is not yet prepared to ease the monetary policy due to the current situation on the market and international politics.
The price of the precious yellow metal was $1,325 per ounce.
On Thursday, 15th of March, the market experienced tension once again. The reason for it – reports regarding the US President Donald Trump and his intention to impose customs duties on China. Their amount can exceed 60 billion dollars. The reason for such a sudden imposition of duties was a dispute with China about the violation of intellectual property. According to economists, tariffs can damage the world economy and provoke a trade war.
As a result of the stir, the price of gold stopped at $1,316 per ounce mark.
The Head of Commodity Strategy at TD Securities Bart Melek sees positive trends in the gold price growth. According to his forecast, the ounce of gold may rise up to $1,350 in the second half of the year.
On Friday, 16th of March, the dollar strengthen its position due to personnel change in the White House. In addition, market tensions are rising in anticipation of the FED’s meeting. The first interest rate hike of the year is expected to occur on the 20th of March.
As one might know, changes in rates affect the price of gold, but this does not greatly concern those who work with gold.
The price of the precious metal amounted to $1,314 per ounce.
The stability of gold is confirmed by the Sprott Asset Management report:
"We have long been proponents of keeping the precious metal as a protection against the general market volatility. The events which took place in February underscore the validity of our investments," said Portfolio Manager Shree Kargutkar.
On Monday, 19th of March, the price of an ounce of gold was $1,309.
Columnist and Senior analyst at Kitco.com Jim Wyckoff also anticipates an increase in gold prices. In April 2018, the price of the precious metal will be high above the $1,350 per ounce mark.
Investors are starting to focus on the FED’s meeting, which should be constructive. According to UBS analysts, gold will remain a stable foundation that protects from unexpected bursts of stock market volatility and geopolitical tension.
Strengthen your golden foundation!