The price of gold rose to $ 3,445 per ounce Troy during the night in response to Israel’s attacks to Iran, the highest level from the record reached almost two months ago, says Commerzbank raw material analyst Carsten Fritsch.
Gold is probably the main beneficiary of political risks
“The price had already approached the $ 3,400 mark per ounce Troy yesterday after the production prices in the US also rose less than expected in May. Before this, consumer prices in the US had no longer given indications of a growing price pressure due to tariff increasing. “
“A 25 basic point rate cut in September is completely discounted in federal fund Weaker American is an important reason why we have significantly reviewed our forecast of the price of gold for this and next year. “
“The growing doubts about the future status of the US dollar as a safe refuge and the main reserve currency of the world, as well as the attacks repeated to the independence of the Fed, play a key role here. Gold is probably the main beneficiary of these doubts because it is free of political risks. For this reason, it is likely that central banks and private investors continue to buy large -scale gold despite the already high level of prices price will probably lose impulse. “
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
