The gold luster attracts investors amid the murky corona
The gold luster attracts investors amid the murky corona

Economic shocks and shifts in the world during the past four years, between slowing growth in China and the United States, faltering in the euro area, Britain's secession from the European Union and financing crises hitting emerging markets, but gold remained steadfast and did not witness violent downturn but became a safe haven against these Storms.

 

$ 679 an ounce, or 64.1%, is the total rate of rise of the yellow metal during 4 and a half years, starting from the level of $ 1060.30 an ounce and reaching $ 1739.08 an ounce at the end of Friday's session.

The precious metal recorded an increase of 13.6% at the end of 2017, achieving the price of $ 1306 an ounce, before retreating slightly to the level of $ 1278.03 an ounce at the end of 2018, losing its balance of 2.14%.

But gold increased in the following year to ascend 18.87% after reaching $ 1519.05 an ounce.

During less than 6 months of 2020, coinciding with the Corona pandemic, gold set records and rose by 14.5%.

And the expectations of investment banks and international consultative institutions go that gold will continue to rise, as Jeff Kray, head of commodities research in the investment bank Golden Man Sachs, expected the yellow metal to rise to the level of $ 1,800 an ounce.

In his speech to Bloomberg News, Krei relied on the investors ’intention to buy in gold these days as a safe haven for savings in light of the high risk of other financial assets from stocks and bonds.

 Edward Moya, a senior market analyst with Oanda Brokerage, agreed with him, noting that the yellow metal is still in strong demand as it is the safest face of institutional traders.

This comes in light of the recent rise in the number of cases of Covid-19 in about 12 American states, reflecting factors including increased testing, but many of those states are also experiencing an increase in hospitalization.

Reduced optimism pushes gold to the highest level in a week

On the other hand, the performance of gold in the coming days is linked to the installation of the Federal Reserve (US Central Bank), last Thursday, interest rates at zero to 0.25%.

In the opinion of Bart Milk, head of global strategy at TD Brokerage, the stabilization of interest rates reflects lower inflationary pressures, which would reduce the chances of the gold rally during this week's trading.

He pointed out that the precious metal may face a limited increase in price fluctuations, to move between the ranges of 1650 to $ 1,800 an ounce.

However, your tendency is more optimistic in the long run, as he sees that gold will take an upward trend, suggesting that once inflation begins to rise in late 2021, the price of gold will reach $ 2000 an ounce.