The price of gold rose by more than 3% on Tuesday, setting a new record on world markets. Investors are massively investing in the precious metal due to increased geopolitical tensions and fears about the stability of the American economy. This is reported by Reuters, writes UNN.
Details
The spot price of gold recorded a peak value of $5,181.84 per ounce, continuing its rapid growth after breaking the psychological mark of $5,000 on Monday. Since the beginning of the year, the metal has already risen by 18%. The main factors of the rally were expectations regarding the revision of interest rates in the US and the active policy of central banks around the world to purchase gold to diversify reserves.
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Impact of US policy on metal value
An additional impetus for the growth in demand for safe-haven assets was President Donald Trump's statements about introducing new tariffs on imports from South Korea. In addition to trade wars, the market is reacting to the threat of a partial shutdown of the US government, as the deadline for funding government agencies expires on January 30.
Market participants are also awaiting the results of the two-day meeting of the Federal Reserve. Although most analysts predict that rates will remain at their current level, special attention is focused on the speech of Fed Chairman Jerome Powell. Investors are concerned about the future independence of the central bank and its ability to counteract inflationary risks in new political conditions.
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