Coinspeaker
Gold Prices Hit Record High Moving Closer to $2K amid U.S.-China Tensions

In early trading hours today, gold prices set new record highs. After trading slightly above the $1,900 level last week, gold has hit $1944.76 per ounce, topping a record mark set in September 2011. And this rally is happening as the relationships between the U.S. and China are escalating. Besides, worries over the recurrence of coronavirus pandemic are growing, which also increases the value of gold as a stable asset.

Spot gold traded at about $1,931.11 per ounce after earlier trading as high as $1,943.9275 per ounce. As of press moment, spot gold price makes up $1935.80 per ounce. Gold futures were $1,926.70 in early hours, now they are trading at $1930.30, or 1.75% up.

Gold has always been considered a safe haven in times of economic and political uncertainty. Now, when the trade relationships between the world’s leading nations, the U.S. and China, are escalating, gold is a good store of value as never.

Both countries have decided to close their consulates. The U.S. ordered to shut down the Chinese consulate in Houston, while China demanded to close the U.S. consulate in Chengdu. Following that, Secretary of State Mike Pompeo said the United States will no longer tolerate Beijing’s playbook to usurp global order.

Commonwealth Bank of Australia’s Vivek Dhar commented:

“The negative relationship between long term US real yields and gold futures has held up fairly well over the longer term. That is because when long term US real yields increase, gold is less attractive relative to US interest bearing securities since gold has no income earning ability. The fall in US 10 year real yields is primarily being driven by an increase in US 10 year inflation expectations.”

On July 29, the Federal Reserve will make a decision on the interest rate. The Relative Strength Index (RSI) that is currently holding above 80, may push deeper into overbought territory, calling for a further retracement. The Federal Open Market Committee (FOMC) vows to “increase its holdings of Treasury securities and agency MBS (Mortgage-Backed Security) and agency CMBS (Commercial Mortgage-Backed Security) at least at the current pace.”

Gold is benefiting from the present uncertainty. But it is unclear whether gold prices will grow further and set new record highs. Bulls’ next target is $2,000. If they are right, gold will pass a big milestone in the history of its trading.

Silver has also joined the trading rally. It has jumped 5.99% to its highest since September 2013 at $24.218 per ounce today.

Gold Prices Hit Record High Moving Closer to $2K amid U.S.-China Tensions

Similar to Notcoin - Blum - Airdrops In 2024

origin »

227 +