On Monday, 14th of May, an ounce of gold was worth$1,320. The threat of imposing new sanctions against Russia and the correction of currency quotes restrain not only the growth of the precious metal market indicators, but also the stock market. As a result, the dollar’s position can destabilize.
According to the famous American investor and analyst Jim Rogers, the US trade war with China, the unresolved military conflict in Iran and the growth of the Fed’s interest rates will have a strong impact on the weakening of the stock market.
In the photo: Jim Rogers, a high-profile American investor, analyst and writer. Photo rights: SeongJoon Cho / Bloomberg
According to Rogers, the crash of the stock market is inevitable, if the US foreign policy enforced by President Donald Trump will not change radically. Goals and national priorities within the sector of national defense must be reconsidered. Given the precarious state of affairs in the White House, the likelihood of change increases.
On Tuesday,15th of May, the price of gold amounted to $1,316 per ounce. The precious metal has fallen in price due to an unprecedented growth of the US bond yields. However, the demand for the yellow metal remains high.
Analysts do not see any major reasons for concern because of a slight decline in the price of precious metals. Against the backdrop of a gradual strengthening of the dollar, gold becomes much more affordable, which means that now it is important not to miss the key moment and take advantage of the price advantage of the safest asset in the world.
Analyst at ANZ Banking Group Daniel Hynes:
"All this looks insignificant enough to cause concern in the long-term perspective. A lasting interest in gold is well-maintained."
On Wednesday, 16th of May, gold stopped at the $1,290 per ounce mark.
The president of the trading company Blue Line Futures, Bill Baruch, is always accurate in his predictions about the price of gold.
"The interest of financial market participants in gold will increase even more as soon as the precious metal breaks the mark of $1,327 per ounce," explains Baruch.
According to the expert, the decline in gold will naturally change to an upswing. One should not underestimate the positive dynamics of the growth and the prospects for the yellow metal.
On Thursday, 17th of May, the price of gold was $1,290 per ounce.
Hyperinflation has particularly affected Argentina and Venezuela. The national currency of these countries is close to depreciation. It is necessary to understand that a similar situation might take place in Western countries too. The experts are unanimous in the opinion that if both countries began enhancing their gold reserves instead of a currency reserve starting from the beginning of 1990, today these states would be considerably richer.
The Iranian broadcasting service Radio Farda reported that the currency crisis in Iran reached its peak. The Central Bank of Iran has already passed a number of new laws to control illegal flows of foreign currency, while the Iranians buy up physical gold and gold jewelry to preserve their own savings.
On Friday, 18th of May, the price of an ounce of gold was $1,292.
Thomson Reuters GFMS, the world-leading research company, has published a review of the gold market GFMS Gold Survey. By comparing geopolitical risks, GFMS analysts do not rule out the possibility that the price of the yellow metal will increase by the end of 2018. A sharp rise in price up to $1,500 an ounce is expected.
This week, the World Bank made an optimistic forecast for gold prices for the next 10 years. According to the data of the published report, the price of the yellow metal will grow by 3% by the end of 2018, and the average price per ounce will be $1,346.
Paradoxically, the main factors of the growth of gold prices are:
A stock market crash;
Weakening economic cycles of the world economy;
The growing external debt of the United States;
A stagnation in diplomatic relations;
Strengthening of military conflicts.
If at least one of these factors manifests itself in the next 5-10 years, there will be no limit to the growth of gold prices.
On Monday, 21st of May, the price of the yellow metal was $1,284 per ounce.
Gold does not lose its relevance. Financially speaking, the yellow metal is still the most stable and profitable asset, even during a crisis.
Preserve and accumulate your capital with gold.
Strengthen your financial security.
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