Published: 2019.08.22. The price of gold is again trading at a maximum of 6 years

 The price of gold is again trading at a maximum of 6 years - Preview

The world price of gold continues to trade at a maximum of the last six years. The growth driver for the precious metal is the escalation of the trade conflict between the United States and China, as well as concerns about the prospects for the global economy. In this unstable situation, investors prefer protective assets.

In early August, the price of gold reached $ 1,455 per ounce, which was the highest since May 2013. It is worth recalling that it is during the economic uncertainty that gold acts as a protective asset-refuge, which investors prefer to temporarily park their capital .

According to Michael McMarty of CMC Markets, “gold is supported by concerns about the prospects for the development of the global economy. Yellow precious metal acts as a "safe haven" for big business. Lower interest rates by the central banks also support gold prices. ” Fresh data on the American economy confirm expert forecasts that in September this year the US Federal Reserve may again reduce its interest rate.

The short-term outlook for gold looks quite positive. Amid negative economic factors, investors will avoid risky assets, and instead will prefer safe and protective assets, one of which is just gold. Moreover, the Asian stock market fell yesterday to a six-month low, which also became supportive news for the price of gold.