Commodities: Spot Price Gold and Oil
Recent developments regarding the spot price gold show that this precious metal remains an important commodity. The price went up and reached $1.348 for one ounce of gold. On Wednesday the price of an ounce of gold was $1,337. The value keeps getting bigger as time goes by, giving hope for the bullion.
Spot price gold keeps going up since the Federal Reserve is planning to cut the interest rates possibly more than once this year. Next week the U.S. Federal Reserve will organize a meeting on June 19.
There is a possibility that the Federal Reserve will end the Fed rate hike cycle, instead of switching to the rate cut cycle. In this scenario, the spot price gold will increase, since during higher volatility gold always becomes more interesting to investors.
Frank Holmes is the CEO of the U.S. Global Investors and a contributor to the Forbes magazine. He is very optimistic regarding current gold prices. His advice to the investors is to take a close look at gold amid the current situation.
According to Holmes, he believes that spot price gold is doing well as the price of the precious metal is going up. The investors are likely to increase their gold reserves as a precautionary measure against the possible tariffs, hurting the American economy.
The current situation around the gold prices is promising. Paul Tudor Jones, the fund manager and creator of Tudor Investment Corp., expects the price to hover between $1,400 and $1,700. The prices keep getting affected by the economic and political tensions around the world.
It is a sign that precious metal is becoming more popular. Looking at the prices in the previous years, it becomes clear that they never went down below $1,200. This indicates that even during unstable economic situations gold remains a stable source for investments.
Everything has its advantages and disadvantages and gold is not an exception. For investors who are looking to create a diversified portfolio, buying gold is a good option. For instance, when there are issues with equities and bonds, gold might be used to stabilize the situation. Gold can mitigate problems with the core markets.
From ancient times gold was seen as the cornerstone of financial stability. In modern days, there are plenty of reasons to invest in gold. Even today people around the world maintain trust in this precious metal. It is desirable to get to know more about spot price gold and factors affecting its status.
Short Update on Oil
Markets around the world are adjusting to the incidents which took place in the Gulf of Oman. Two oil tankers came under the attack by unidentified attackers. It is not the first accident in the Persian Gulf, which further escalated the tensions between the U.S and Iran.
The chances of military conformation remain as both sides are building up their military powers in the region. All these additionally lead to higher gold prices in case of tensions resulting in a military confrontation.
Spot price gold continues to grow as several factors such as tensions in the Gulf of Oman, uncertainty regarding the global economy, and more external factors facilitate the rise of gold.
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