Growing up is that US President Donald Trump announces the introduction of new anti-Iranian sanctions, now directly related to Iran's highest spiritual Ayatollah Ali Khamenei and other top military officials in Iran. "Geopolitical tensions and the growing risk of a world-famous armed conflict of gold have traditionally been recorded. They increase world uncertainty, while gold is perceived as a protection against it," points out the head of the Czech fund Lukáš Kovanda.
The tension around Iran is not the only reason investors have started buying gold. Last week, the US central bank and the European Central Bank did not rule out last week that they would start lowering interest rates again or starting a new round of pumping money into economies. They want to fight the slow global economy, causing business friction.
"The results of the US central bank meeting were interpreted by the market as an accumulation of future risks," said Golden Port analyst Marek Brávník. The influx of new money into gold was also reflected in the interest in the world's largest listed fund investing in gold, SPDR Gold Trust. Investment volume increased by 4.6 percent on Friday, the largest increase since September 2008. At that time, investors were in gold due to fear of a financial crisis.
Another factor affecting the buyer's interest in gold is still unresolved the threat of trade war between the United States and China. In fact, US leaders still hold a tough stance in the negotiations, which increases the possibility of another round of trade war. Again, this uncertainty drives investors into a secure port.
Last year's gold prize:
The gold price can therefore continue to grow. "Given the additional mix of geopolitical and economic events, I expect the growth period to be several years old. I wouldn't be surprised if we had the price of over $ 1,500 or $ 1,600 a troy ounce as early as next summer", says Brávník.
Gold has been good for a long time. "Between 1971 and today, gold reached 7.72 percent in annual dollars," adds BHS chief economist Stepan Krecek.
Iran will never try to acquire nuclear weapons. According to Iranian IRIB, Iranian Foreign Minister Mohammad Javad Zarif said. He pointed out that only the United States had used nuclear weapons before.
At the same time, the US Ambassador for Disarmament, Robert Wood, said the US intends to continue to exert pressure on Iran until Tehran changes your behavior.
In response to the new sanctions, Iran's President Rushing said the White House was mentally retarded and pointed out that sanctions against Iran's highest priests would fail.