As we enter 2020 on a global high for Gold prices, the questions arise for investors as to how gold has become so valuable moving into the new decade. We can look at a few aspects including US military advancements, and also refer back to the health of international relations with regards to trade.
Gold has peaked at a 7 year high, setting a new precedent since 2013, and proving to be both Investors and Hedge funds opportunity for selling rather than buying, at the right time. The price is sitting comfortably at around $1565.00 USD / troy ounce in January 2020, proclaiming the new benchmark, and piquing interest for investors.
The Iran/US relations and active war have been a spotlight in consideration and speculation around current circumstances, and will also promote future projections of gold pricing if trends of unrest and military operations and movements continue to have strong influence on the commodity market, responding and being directly affected by international relations between the two nations.
On another angle behind increasing gold value, the weakening US dollar has been a catalyst also helping prospects for better investment opportunities, specifically in commodity trade, with investors turning to gold as a more predictable option, which is also further strengthening the position and value of the resource. Tensions rising between the US and Iran, have been detrimental to the US Dollar, as well as influences such as the long-standing trade-armistice with China.
If you’re interested in gold trading, buying or selling gold, now is a fair and exciting time to investigate the influencers around this area of trade and investment. The influences and effects of external economies, commodity markets, trade and war on global gold trade prices can be further investigated by visiting the New York Mercantile Exchange for historical data and trends, by following “The Australian” for opinion pieces and news reports with verified sources, as well as precious metal mining companies such as Newmont. These investigation avenues, including ourselves here at Brisbane Gold Brokers, will provide understanding and predictions for future movements, and help you to make safer investment decisions when selling, buying or trading gold.
