The spot price of gold and silver on Friday

Gold prices continue its journey to the top. At the moment, the price of spot gold is $1,411 per ounce. It means that the price of spot gold increased by 0.6%. So far gold prices rose by 0.9% since the beginning of the week. There are several reasons why gold prices are on track to post another weekly gain.

The Chairman of U.S. Federal Reserve Jerome Powell testified in Congress on Wednesday.  He gave a speech in front of the Financial Service Committee. Powell said that Federal Reserve is ready to reduce the interest rate if it is going to help the economy. During the previous board of governors meeting, policymakers decided not to alter the current interest rate.

However, the chance that the Federal Reserve will lower the borrowing rates increased after Powell’s comments. Lowering the interest rate will help the gold prices to grow.

The reaction to the committee meeting was that the value increased by 0.6% the one day after hearing in Congress. Prices continue to grow according to the latest information. This meeting in Congress is important because it underlines the fact during unstable times gold is a stable source of investment.

Possible risk factors

Let’s have a look at other issues which have a direct impact on gold prices. As mentioned above, the trade war between the U.S. and China continue to affect the global economy. This trade dispute started in 2018, and it is hard to predict when it will end. During the G-20 summit, U.S. President Donald Trump and Chinese President Xi Jinping agreed not to impose any additional sanctions. However, China’s position is that the U.S. should lift the tariffs which are already in place.

Trump is also dissatisfied with the current situation. He said that China is not doing enough when it comes to buying U.S. agricultural products.

Another factor is that regional tensions in the Persian Gulf. As another incident occurred two days ago when Iran tried to seize the U.K. tanker The British Heritage. This incident highlighted the importance of gold as investors are willing to invest in gold to mitigate the effects of market instability.

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 price of one ounce of silver is $15.16. The price of silver increased by 0.3% on Friday. The silver price will continue to grow as overall feeling on the market is that this trend will remain in the upcoming days.

The spot price of gold increased and has the potential to strengthen its position on the market. Gold and silver prices went up due to increased demand and world economic problems. Investors are looking for options on how to deal with global economic problems. In this situation, investing in precious metals, especially in gold, is a good idea. Most likely, this is not the upper limit as this positive trend will continue for the upcoming days.