Gold has reached a new summit on Monday, continuing to play its role of refuge value, due to the aggressive customs policy of the United States, which feeds confusion on the financial markets. The yellow metal also benefits from the weakness of the US dollar.
At the start of the morning, the London Stock Exchange price reached $ 3,245.44 per ounce (approximately 31.1 grams).
Faced with the new levels recorded since Friday, UBS economists have raised their forecasts to 3500 dollars perce. ‘We expect an additional request from central banks, institutions and private investors following current events, the trade war, the bad sales of the US Treasury and the continuous decline in the value of the dollar,’ they say in a note.
‘Nothing seems to be able to prevent gold from heading around 3500 dollars in the coming months,’ abound the IG bank analysts, who also point to the climbing of trade tensions between the United States and China as well as a Dollar in free fall.
‘The gold extends its earnings over 3220 dollars on growing bets that US treasury bills lose their status of refuge value due to the hectic and harmful policies of the United States’, also analyzes the expert from the Glandoise bank Swissquote, Ipek Ozkardeskaya.
In response to Trump’s decision to increase customs duties on Chinese products to 145%, Beijing retaliated Friday by increasing its taxes on American imports to 125%. However, the US government has excluded smartphones, laptop computers and other important electronic products of special customs duties, including those from China. However, this measure should only be short -lived.
In addition, investors are impatiently awaiting the speech of the President of the American Federal Reserve (Fed), Jerome Powell on Wednesday to obtain new indices on the prospect of rate drops.
/ATS
