Home / Business / Gold the most expensive in six years. The reason is not just Iran. "Olive to the fire was made by Donald Trump"

Gold the most expensive in six years. The reason is not just Iran. "Olive to the fire was made by Donald Trump"

Gold on the world market already costs over $ 1420 per ounce. At the end of May, it was less than $ 1,300 per ounce. Over the past month, gold has increased more than 10 percent

  Zlot. Quotes from last month Z³oto. Quote from last month Source: investing.com

Zlot under geopolitical influence

Thus, gold prices are at the highest level for six years. There are several reasons for this increase. The one who has not only noticed in recent days is the conflict between Tehran and Washington. After the shooting of the American reconnaissance dragon and the sharp messages from both sides, the risk of tensions in concrete actions increased, even military.

Conflict with Iran scares investors and some of them hasten investments from riskier assets on so-called safe ports. Such a sanctuary is seen among other things of gold. What happens around Iran, including the introduction of new sanctions from the United States and proposals for the closed road for diplomatic negotiations, increases the price of bullion.

In addition, the top of the G-20 is ahead of us, on which Donald Trump and Xi Jinping have to talk about a commercial dispute that has been going on for many months.

Read also: Russia's central bank buys gold and currencies for power. The story teaches that it is not right

Fed and dollar

There are also US central bank (Fed). Last week, the Fed suggested it was ready to ease monetary policy, ie to cut interest rates.


1; Olive oil was favored by Donald Trump, who openly criticized the central banks' actions from abroad via Twitter. The US president said the Fed did not know what he was doing and that it was a mistake to raise interest rates last year. Although last week, the Federal Reserve remained unchanged, the market is convinced that at the next meeting, the FOMC members will decide to lower interest rates. Monetary solutions in the US are crucial for gold prices. Interest rate cuts support the depreciation of the US currency and the weaker dollar contributes to higher metal prices expressed in USD – writes Pawe³ Grubiak, investment advisor and president of Superfund TFI in the comment.

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