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Gold quotes on the Comex exchange in New York rose during trading by 1.3%, to $ 1,503.3 an ounce. Since the beginning of the year, the precious metal rose by 17%.
Gold, classified as a safe haven asset, rises in price amid the collapse of global stock markets. The fall was caused by US threats to impose new duties on imports of Chinese goods and Beijing's promises to give a symmetrical response to such measures.
In addition, in recent weeks, the Federal Reserve System (FRS) has lowered the base interest rate, while the European Central Bank (ECB) and the Bank of Japan have signaled their readiness to take such a measure in the future. On Wednesday, the Central Bank of India and New Zealand lowered rates more than market expectations.
With lower rates, the attractiveness of precious metals as investment tools increases.
“Gold is once again playing the traditional role of a defensive asset,” said Wayne Gordon, executive director of the commodity and foreign exchange markets at UBS Group. In his opinion, the price of gold can reach $ 1.6 thousand per ounce in case of escalation of the trade war.
Spot silver prices on Wednesday rose to a maximum for the year mark of $ 16.808 per ounce.
source: bloomberg.com
Gold, classified as a safe haven asset, rises in price amid the collapse of global stock markets. The fall was caused by US threats to impose new duties on imports of Chinese goods and Beijing's promises to give a symmetrical response to such measures.
In addition, in recent weeks, the Federal Reserve System (FRS) has lowered the base interest rate, while the European Central Bank (ECB) and the Bank of Japan have signaled their readiness to take such a measure in the future. On Wednesday, the Central Bank of India and New Zealand lowered rates more than market expectations.
With lower rates, the attractiveness of precious metals as investment tools increases.
“Gold is once again playing the traditional role of a defensive asset,” said Wayne Gordon, executive director of the commodity and foreign exchange markets at UBS Group. In his opinion, the price of gold can reach $ 1.6 thousand per ounce in case of escalation of the trade war.
Spot silver prices on Wednesday rose to a maximum for the year mark of $ 16.808 per ounce.
source: bloomberg.com
