According to experts of the investment bank Standard Chartered, the refusal to raise interest rates by the Federal Reserve System (FRS) of the United States is able to support prices for the yellow metal. Experts believe that the Fed may not raise rates this year.
Many analysts expected a similar decision from the American regulator. However, it contrasts very strongly with the statement made in December last year. Recall that there were about two possible rate increases in 2019. The abrupt change in the rhetoric of the Fed has forced investors to turn to the gold market once again. They considered the yellow metal to be the safest asset.
Note that in 2018 a huge amount of precious metal was removed from the United States. According to the US Geological Survey (USGS), exports of the yellow metal increased by 23% compared with 2017. The USGS stated that America exported 473.6 tons of gold last year and imported 212.8 tons. At the end of 2018, net exports of precious metals amounted to 260.8 tons, which exceeds the data in 2016 by five times.
Standard Chartered believes that the macroeconomic background will support the gold market. Moreover, experts believe that the US currency rate will decline in the current situation.
The material has been provided by InstaForex Company - www.instaforex.com