George Meling Stanley, the largest gold strategy at State Street Global Advisors, says Gold is 40 % over the past 12 months still has legs. This is the reason.
Gold broke $ 3000, an ounce of ounce for the first time on Friday, as investors sparked a gathering of safe armed assets, amid the escalating economic uncertainty due to the president Donald Trump It was Tatrov.
spot Gold prices Its highest level reached $ 3,004.86 earlier in the trading session on Friday before returning to less than $ 3000, where traders got profits.
Tai Won, an independent mineral dealer, said that the increase of the Gold over the historic landmark of $ 3,000 was driven by “trapped investors seeking assets ultimately safe armed considering Trump’s disturbance on stock markets.”
Why gold prices can reach $ 3,000 despite volatility
Instant gold prices exceeded $ 3,000 an ounce for the first time ever on Friday. (Imaging ARNE DEDERT/DPA/AFP via Getty Images/Getty Images)
It is traditionally seen as a safe store of value during geopolitical turmoil, Gold Bullion increased about 14 % so far this year, partially driven by fears of the effect Trump’s tariff Revenge by commercial partners-who contributed to the sale of the last stock market.
Money managers need real assets, especially in the West, a strong stock market Economic slowdown “Fear to return to gold – this is happening now,” said Oli Hansen, head of the commodity strategy at Saksu Bank.
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Gold is traditionally seen as one of the safe assets of investors during times of economic and geographical turmoil. (Istock / Istock)
Gold prices were also strengthened through demand from central banks, as China strengthened its reserves for the fourth month in a row in February.
“Central banks are continuing the surveys at the standard gold level, they seek to diversify away from the increasing US dollar,” said David Russell, CEO of Goldkar.
Expectations that Federal Reserve It will return to reduce its monetary policy in the next few months, also helped gold, as traders expect that interest rates will resume in June, according to the CME Fedwatch tool.
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“There are good reasons for the reason that the demand for investment remains strong … increasing geological and geological economic risks, high inflation expectations, high rates and uncertainty that market feels,” said Juan Carlos Artgas, head of World Gold Research, World Gold Council.
Reuters contributed to this report.
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