The price of gold rose to a record $ 3800 per ounces, and the noble metals increased, encourage the weaker dollar, while investors considered the potential closure of the US government.
Canvas Gold rose by as much as 1.4% on the record 3812.05 dollars per ounce – surpassing the climax reached last Tuesday – after noting six consecutive weekly winnings. Silver increased by as much as 2.4%, while platinum and palladium also grew strongly, and gains encouraged by persistent market clamping and inflation in foreign trade funds (ETF) provided by these metals.
Dollar in the fall
The dollar has fallen while investors were waiting for the development of the planned meeting between the leading leaders of the American Congress and President Donald Trump on Monday – the day before the expiration of federal funding if no agreement was reached on the short-term consumption law. Closing would jeopardize the release of key data, including the payroll report on Friday, for which economists expect to show the muffled employment growth in September. The weaker dollar makes noble metals cheaper for most customers.
Foreign employment data would support the relieving interest rates by the FED officials during their next decision on interest rates in October – scenario that would be more attractive no-interest scenario. However, there is a high degree of uncertainty about the appearance of the FED’s interest rate cycle, and officials express different opinions on monetary policy, while some economic data were stronger than expected, seebiz.
The traders also continued to consider the threats of the U.S. Central Bank, after the lawyers of the Governor Fed Lisa Cook called on the Supreme Court to leave her at work while fighting Trump’s attempt to discharge her.
Good value protection
Gold does not seem overpriced in relation to the dollar and government bonds, which should contain the level of the risk of the Risk “from the potential notice of the Central Bank, including the Fiotakis PLC. “It makes him surprisingly good value protection,” they added.
This year, gold increased by 45%, placing consecutive highlights of central bank demand and continuing the reduction of interest rates by Fed.
