quora Precious Metals: The Spot Price of Gold + Silver
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The Spot Price of Gold + Silver

Gold prices continue to prove that it rise to the top was far from being over. Right now, the cost of spot gold is $1,405 per ounce. It means that the price is higher than at any time for almost six years. As previously reported expectations that gold prices would reach this level was high. There are many reasons why gold prices broke the records.

The U.S. Federal Reserve meeting is an event which a lot of analysts and investors are monitoring. It helps to understand the current state of economic affairs. Federal Reserve decided not to alter the current interest rate. Nevertheless, it made it clear that there will be one or two cuts in 2020.

Gold prices reaction to the meeting was that the value increased by 2.2% the day before this announcement. Prices continue to grow according to the latest information. This meeting played a significant role as gold prices indicate that uncertainty surrounding the global economy is going to continue during the upcoming weeks.

Possible risk factors

Let’s have a look at another serious issue which has a direct impact on gold prices. Governments around the world are overprinting fiat currencies. The result of such activities is unprecedented debt levels which make these countries vulnerable to the financial crisis. Venezuela is an example of a country as the country’s inflation rate skyrocketed during the last several years.

However, Venezuela is not the only country which such practice. Argentina and countries in the Middle East and Africa are among the countries which are also trying to solve their economic problems. This Silver is among the winners when it comes to commodities as prices are uptrend is concerning, and unfortunately, governments are not doing enough to curb this malpractice before their countries reach the financial crisis.

Another problem is that four countries, China, Turkey, India, and Russia, combined buy more gold than produced during one year. Central Banks are increasing their gold reserves as a precautionary measure against the possible economic problems which might undermine their currencies. What makes the situation more severe is not only demand. Also, the fact that primary producers gold reserves diminished by 26% since 2012.

Silver price updates

The gold is not the only precious metal which gained from the uncertainty of the global economy. Silver is another commodity which is on the rise due to favorable conditions. The fall of the U.S. dollar and the market reactions on the Federal Reserve’s meeting had a positive impact on the silver price.

The price of one ounce of silver is $15.31. The predictions are that it will reach $15.50. The silver price will continue to increase as overall feeling on the market is that this trend will remain in the upcoming days.

Spot gold, as well as silver prices, are going up thanks to the increased demand and world economic problems. Investors are willing to invest in these commodities as they provide a stable source of revenue. Gold prices broke the record, and most likely, this is not the upper limit as this positive trend will continue for the upcoming days.

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