Gold is probably the most popular protective asset. The market was watching its rapid growth, but now we see a fall to its minimum price for the current year. After the news about the truce of America and China, the precious metal began to lose popularity among investors and fell below $ 1.4 thousand.
Today, during trading time in London, gold quotes have dropped to $ 1387. Prior to this, the price fell even lower – up to 1,384 US dollars.
Saturday turned the gold market in the opposite direction. Donald Trump and Xi Jinping agreed to take a break in the trade war. They also decided to continue negotiations in order to get out of the conflict. The US leader promised to give up his plans to impose 25 percent tariffs on Chinese exports. This applies to all remaining products from China totaled nearly 300 billion US dollars. President Trump also promised that he would allow US companies to trade with Huawei. In turn, China intends to increase purchases of American agricultural goods.
The strong growth of the gold market was supported by difficulties in relations between China and America, as well as intensions to ease monetary policy by world regulators. Over the past month, the precious metal has grown by 8%. On June 25th, the price reached its peak of $ 1,439 since 2013. It was 2016 when gold showed such an increase for the last time. We recall that 2016 was marked by the UK’s referendum on the EU membership.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group