Do you want your money to be safe and sound? Market authorities recommend gold

Do you want your money to be safe and sound? Market authorities recommend gold

25.10.2016

It is unquestionable that gold is sensitive to rising rates; however, this precious metal still counts with a backup to resist changes.

The expert, Yuichi Ikemizu, sheds some light on the details concerning the stability of gold prices during the remaining months of the year. What is going on in the market?

On Wednesday, October 21th, the USA GOLD's Daily Gold Market Report posted certain information that demonstrates, once more, the safeness of gold.

Dollar vs. Euro

The sensitiveness of gold towards the Fed's rising rates derives from its pricing in dollars and, in the face of a doubtless raising in the US rates in December, gold prices have dropped to $1.265 an ounce today.

Meanwhile, the European Central Bank (ECB) left interest rates unchanged on Thursday. Low rates tend to support gold, although that is often offset by a weaker euro. The currency fell to its lowest since March against the dollar on Friday.

The resistance of gold

The drop in the price of gold as a result of a strengthening dollar does not suppose a drastic change because of a stable and constant purchase of physical gold on the part of China and exchange-traded funds (ETFs).

Yuichi Ikemizu, head of commodity trading at Standard Bank in Tokyo, verified this fact when interviewed:

"ETFs adding new positions show the investment demand for gold, and this could probably prevent gold going below $1,250. Everyone is waiting for the elections and the prices are just moving according to the dollar. But even if they raise rates, gold prices will not go down."

A convenient purchase of gold

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The stability of gold prices and Global InterGold's opportunities of earning are profitable advantages when it comes to a convenient purchase of gold. Find out how to seize the benefits of acquiring this precious metal here.