Gold News

On Monday, gold began to actively regain the previous week's losses, which were caused by easing global trade tensions. According to Investing, the rise in gold prices was driven by several factors simultaneously, including Moody's downgrade of the US credit rating.

According to Fox Business, many Americans have recently decided to sell their jewelry to take advantage of the record-high price of gold, which has surpassed $3,200 per ounce.

The US-China trade deal led to a slower growth of gold prices. Still, economists expect the yellow metal to rise further. Strategists at WisdomTree think gold prices will continue to grow as a result of strong demand from central banks and Chinese investors.

A decrease of the indicator value may contribute to the fall in quotes of Gold.

Demand for physical gold increased in many Asian countries this week, driven by lower global prices that have sparked consumer interest in the metal. In India, for example, suppliers offered discounts of up to $34 on bullion purchases.

Despite the impressive growth in gold prices since the start of the year, some experts believe the current rally is just the beginning of a long-term bullish trend. Incrementum's bullish outlook suggests that gold may climb up to $8,900 by the end of the decade.

Gold prices fell 0.3% on Friday, heading for their sharpest weekly drop in six months. Easing fears of global trade tensions pressured the market, making safe-haven assets less attractive. The bullion has lost nearly 3% over the week.

The trade confrontation between the US and China was one of the main reasons for the recent surge in gold prices to new highs. However, as business journalist Barry Fitzgerald notes, an agreement between the countries to temporarily ease tensions has cooled the precious metals markets.

City Index analyst Fawad Razaqzada expects bullion prices to drop to $3,000 per ounce in the near term. The expert attributes this forecast to growing investor optimism about the US and global economies. However, he believes gold will retain its growth potential.

JPMorgan notes that bitcoin may outperform gold due to sustained interest from institutional investors in the cryptocurrency. The token's growth is being supported by increasing corporate capital allocations to bitcoin and the adoption of laws permitting governments to invest in this asset.