Global prices are within a small distance of reaching its unmatched highest record price which is one thousand nine hundred and twenty-one dollars, that was reached about nine years ago in 2011. It looks as though nothing stands in the way of this precious metals from reaching this standing record price. Investors are said not to be worried about this standing record, but are wondering whether it would reach the two thousand mark. And whether the prices of gold will experience a rise or a decline in the next few days this week. The cost of one troy ounce of gold had passed the one thousand nine hundred mark a few days ago on Friday, the 24th of July.
This was ascertained in its last trading day, and it suggested that gold may be on the path of reaching its highest price tag. Gold was estimated to be almost 25 percent in the year to date period, which had the short form YTD. There some key factors that are identified to encourage gold prices to continue going higher. The first is the continued tensions between the United States and China, which has led to a trade war both countries. Others are the continued weakening of the dollar, which is the global trade currency, and the fears that have recently risen about the recovery rate of the world’s economy from the crisis that it currently faces.
All these factors seem to remain in play, and seems to favor a rise the costs of gold. Next few days this week are said to be critical moments that would either cause an increase or decrease in the gold prices. The reason for this as earlier stated is the fact they the gold price may reach the two thousand mark, and this may cause an increase in record sale orders. It is believed that the bulls are the control behind the gold price, and they are tipped to push the gold prices to a higher mark.
If the all-time record is met this week, it is a good feat, and may see that the investment in gold by investors will yield good amounts of profits. The Federal Reserve rate’s announcement event, that is to be held on Wednesday, the 29th of July, is said to be most crucial to hold this week. There are widespread hopes that the Federal Reserve may ensure that the present interest rates are being maintained. The Federal Reserve’s decision on monetary policy, has a direct effect on the value of the dollar, that in turn directly affects the cost of gold.
Dovish monetary policy by the Federal Reserve, is negative to the value of dollar, and encourages the costs of gold. The Federal Reserve has said that the rate at which the economy of the United States is recovering, is below its initial expectation and estimation. This was because of the second wave of the infectious disease that turned to a global outbreak, that saw that the economies of various nations around the globe become affected negative including that of the US.