Price per Troy ounce of gold rose on Friday above $ 1,500, breaking the key psychological level for the precious metal amid the uncertainty of investors in the continuation of the pause taken by the U.S. Federal reserve in reducing interest rates.
Gold in a new perspective, denying its title as a safe – haven asset, which saves investors during times of economic upheaval, as the market is not anything that could affect profits in other assets.
this year, gold has risen more than 17%, including growth on Thursday, and shows the best results for the period from 2010 uncertainty between the US and China, as well as rate cuts from Central banks around the world.
this year, investors bought the precious metal as a way to insure their investment against potential decline, as fears of recession grew throughout the year.
But now the fed is unlikely to continue lowering rates after three reductions in 2019. On Tuesday, the President, trump said that the first deal on trade with China, finalized and signed soon.
This may mean that a further profits from gold does not is a reasonable insurance risk, while the experts argued earlier that if the risk of a recession continues, the precious metal may rise to more than $ 2000 to reach a record high.
Despite the fact that the risk of a recession at the moment decreased, investors are still buying gold. Goldman Sachs and UBS predict that gold will continue to rise next year and could rise to $ 1600 per ounce.
But opinion is not unanimous. JPMorgan is betting on falling gold prices in 2020 and thinks she can get cheaper, with the growth of investment in risky assets such as stocks.