New record: gold prices surged $80 in 5 days!
Gold has hit a new record. On February 8 gold prices hovered around $1,173, and on February 11 they jumped to $1,253.
How is this increase explained? What is the current situation with prices?
What has caused the recent rise in gold prices?
On February 5 the US released the latest data on the labor market which led economic experts to expect another interest rate increase for next March. The news have brought about a wave of selling of stocks, which in turn has boosted gold prices.
High price volatility is now observed, thereby becoming another factor which supports the rise of gold prices. On February 8 the prices reached $1200 per ounce, and since then they started a steady growth. As a reminder, the last time gold prices reached $1,200 was last June!
Influenced by these factors, on February 11 a giant jump took place: from $1,197 to $1,253. Can prices get even higher?
Experts share their viewpoints:
Avi Gilburt, blogger at ElliottWaveTrader.net maintains that there is something more important than factors such as a strong dollar, the situation of markets, changes in interest rates, etc. Something that impacts gold prices regardless of these factors. Could it be the historical value of gold? Or the cyclical character of the markets? The expert invites everyone to think about it.
Peter Koven, a Canadian mining reporter, claims that people are turning to gold since it protects them against global volatility. He reminds his readers that gold behaves in a different way than other commodities, which nowadays are falling.
An analyst from FXTM, Lukman Otunuga, found out that the growing pessimism and anxiety about the world economy is increasing the appetite for safe-haven assets, such as gold. Otunuga is sure that gold prices will keep growing until they reach $1,300.
At the moment, gold prices keep a steady growth. On February 15 gold prices were at $1,208 per ounce.
Experts and investors choose gold! Don't miss your golden moment. Read more articles about gold at: Gold is where you find it! Where are $19,000 worth gold bars?
