empty
 
 
16.04.2021 11:45 AM
Geopolitical tensions could drive gold up, but the boost will be short-lived

This image is no longer relevant

Geopolitical tensions are escalating. On the bright side, this is positive for gold. However, Metals Focus said this alone could not sustain strong price increases.

They pointed out that the boost foreign policy issues provoke is always short-lived, as was observed in the previous years.

This image is no longer relevant

"Gold hit multi-year lows at the end of 2013. Then, it began to recover slightly, briefly surpassing $ 1,380 last March 2014. The crisis supported these gains, but they were short-lived as the positive macro statistics continued to weigh on gold," Metals Focus analysts said.

For example, during the missile crisis in North Korea last 2017, gold prices rose rapidly. But in the end, investors became more focused on the growth of the global economy.

Another example is the recent trade war between United States and China. It helped gold reach $ 1,500 an ounce.

Even the storming of the Capitol last January 6 drove gold prices up to all-time highs.

But now, gold dropped to record lows because Treasury yields and the US dollar rallied on rising expectations that the US economy will experience a stronger and more rapid recovery after the COVID-19 pandemic.

Metals Focus said this situation will remain the dominant factor affecting gold, but their projections are positive because they believe that interest rates will remain low even after the global economic recovery.

Andrey Shevchenko,
InstaForex के विश्लेषणात्मक विशेषज्ञ
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    कॉन्टेस्ट में हिस्सा लें
  • चैन्सी डिपॉजिट
    $ 3,000 के साथ अपना खाता जमा करें और प्राप्त करें $8000 अधिक!
    में मार्च हम आकर्षित करते हैं $8000 चैंसी डिपॉज़िट में
    ट्रेडिंग अकाउंट में $ 3,000 जमा करके जीतने का अवसर प्राप्त करें इस शर्त को पूरा करके आप प्रतियोगिता में भाग ले सकते हैं
    कॉन्टेस्ट में हिस्सा लें
  • ट्रेड वाइज़, विन डिवाइस
    कम से कम $500 के साथ अपने खाते में टॉप अप करें, कॉन्टेस्ट के लिए साइन अप करें और मोबाइल डिवाइस जीतने का मौका पाएं।
    कॉन्टेस्ट में हिस्सा लें
  • 100% बोनस
    अपनी जमा राशि पर 100% बोनस प्राप्त करने का आपका अनूठा अवसर
    बोनस पायें
  • 55% बोनस
    अपनी प्रत्येक डिपॉजिट पर 55% बोनस के लिए आवेदन करें
    बोनस पायें
  • 30% बोनस
    हर बार खाता टॉप अप करने पर 30% बोनस प्राप्त करें
    बोनस पायें

अनुशंसित लेख

अभी बात नहीं कर सकते?
अपना प्रश्न पूछें बातचीत.
Widget callback