“If the world situation remains unchanged, then gold will receive support for further growth. This is due to the fact that the yellow precious metal is considered as a protective asset in times of crisis to preserve savings, ”said Michael Ponikiewicz from the investment company Acadian Asset Management.
According to the analyst, in the current situation, gold is one of the best assets to preserve its savings, as uncertainty and crisis phenomena at various levels are growing in the world. Moreover, the yield on 10-year US government bonds is at 0.7%.
“We can draw parallels with the events of 2008. First, everyone bought up gold in order to stabilize their finances. But after the crisis, investors sold yellow precious metals to take profits. This is a normal occurrence, ”the expert believes. “But if we look at unlimited financial assistance from the governments of different countries, then this is an ideal condition for rising gold prices.”