Despite the continued uncertainty around Brexit, the "shutdown" in the United States and the prospect of slowing down the process of raising the Fed's interest rate, the gold exchange rate has not yet been able to overcome the $1,300 mark.
Against the background of the emergence of contradictory news regarding these events, gold market participants seem to have taken a wait-and-see attitude, which is reflected in the dynamics of the precious metal price.
Meanwhile, according to a number of experts, gold still has good chances for growth.
"We believe that the current year should be favorable for the yellow precious metal since financial markets will experience instability, and therefore investors will begin to refuse to invest in risky assets," said representatives of the World Gold Council (WGC).
"The unfavorable political situation in Europe will also serve as a supporting factor for the cost of the precious metal. One of the main problems of the European Union remains to be the unregulated exit of Great Britain from the European Union. Here, it is necessary to add the protests of the "yellow vests" in France and the government of Euro-skeptics in Italy. Another reason why investors will prefer to invest in gold - the weakening of the US dollar and the low-interest rates of the Fed. In addition, it is expected that central banks will continue to buy precious metals in order to diversify their reserves," they added.
"I believe that one of the drivers of growth in the price of gold will be an increase in the US government debt. In the event of a recession in the country, the rate may increase by 5%. There is also the risk of a downward trend in the stock market, which was last observed in the 1970s. Even its first signs can make investors pay attention to gold," said by John Hathaway of investment company Tocqueville Management.
The material has been provided by InstaForex Company - www.instaforex.com