Still Many Uncertainties, Gold Skyrockets
Global gold prices continue to show an upward trend. In today's trading, world gold prices broke through the level of USD 3,360 per troy ounce, with predictions that it will reach USD 3,400 in the near future.
The minutes of the latest Federal Reserve (The Fed) meeting indicated concerns about ongoing inflation and the potential for stagflation. This prompted investors to seek hedging assets such as gold.
Uncertainty regarding US trade policy and potential geopolitical tensions increased demand for gold as a safe haven. The possibility of Iran's rejection of the nuclear agreement given by America could also trigger a re-emergence of conflict in the Middle East
Short and Medium Term Prospects
Market analysts predict that gold prices will continue to increase in the short to medium term, driven by:
The Fed's dovish monetary policy, providing support for gold prices.
Increasing global demand, especially from central banks and institutional investors.
Global economic uncertainty, including the potential for slowing economic growth and high inflation.
Considering the above fundamental factors, gold remains an attractive investment option for portfolio diversification and protection against inflation risks and global economic uncertainty.
Source : (mrv@Newsmaker)
