The price of gold has risen above the 3,300 $ brand Troy in recent days, reports Thu Lan Nguyen, head of FX research and Commerzbank commodities.
Increases the risk of stronger bullish oscillations in gold
“This was mainly driven by concerns about the US budgetary situation, which is reflected in the significant increase in US bond yields, particularly at the long -term extreme (20, 30 years), which is probably due to an increase in the risk premium. A weaker US dollar also provided support.”
“The concerns are being fed by the massive fiscal package of the US government that is currently discussed in the US Congress if it is implemented as planned, this threatens to significantly inflate the deficit of the US government in the coming years and, therefore, question the sustainability of US debt.”
“To this is added the recent reduction of the US credit rating by an important qualification agency. All this erodes the status of the US government bonds as a safe refuge, which means that gold is in greater demand in times of uncertainty. This effect will probably be reinforced as it is observed more frequent increased. “
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.
