For many, gold is considered a safe investment. As opposed to money or interest deposits, it retains its value even during the financial crisis. Investors can now be happy: the precious metal is no longer available for a long time.
When the US Federal Reserve has signaled early interest rate cuts, the price of gold has risen to its highest level over five years. The price of the Troy ounce of June 20 (31.1 grams) rose to $ 1,382.
The demand for gold is growing
Earlier, the US Central Bank President Jerome Powell said he was willing to cut interest rates if needed. He referred to the growing economic plight and underlined the uncertainty caused by trade disputes and slowed down the growth of the global economy. Political risks are increasingly causing investors to seize assets that are safely held, such as gold.
In addition to the US-China trade crisis, tensions between the US and Iran have recently increased. Iranian revolutionary guards strengthened the US drone.
Since the unilateral withdrawal of the United States from the 2015 Vienna Convention and the introduction of new sanctions against Iran, tensions between the two countries have increased. Experts expect the political events to rise in gold prices.