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FX.co ★ Investors bet on gold

Investors bet on gold

Investors bet on gold

In the end of April, there was high activity on the precious metals’ market. Gold prices broke the key level of 1,250 dollars, and then gained momentum. Since January this year the metal price increased by 20% and in the first quarter showed the best dynamic in the last 30 years.
What supports the optimism on the gold market?
According to Vice President of Golden Coin House Alexey Vyazovsky, gold rally is determined by the weak macroeconomic data from the US. In particular, that GDP rose by only 0.5% in Q1 which became the lowest data in the last two years.
Modest economic growth rate suggests that the Fed won’t hike rates anytime soon. The US dollar looks weaker in this situation therefore the investors’ sentiment fell towards safe haven. Moreover, the world’s economy is in stagnation which can turn into the global financial crisis. At the same time the delay of Germany’s repatriation of gold, held for safekeeping in US cast, calls in question whether these gold reserves actually exist.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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