“The negative news background on the stock market in the US puts pressure on the yield of government bonds. Investors now prefer to shift their capital into defensive assets. All this provides support for the price of gold, ”said Michael Armbruster, Altavest’s director.
The appetite for yellow precious metals will continue to grow amid the worsening situation with coronovirus in China. General uncertainty and fear will force people to invest their savings in gold, which is one of the best assets to preserve capital during times of crisis. More recently, the price of gold reached $ 1,568 per ounce, albeit for a short period of time.
Last 2019, the price of gold received support from the growth of world debt while maintaining zero or even negative yield on government bonds. This year, the yellow precious metal will grow due to the soft monetary policy of the US Federal Reserve and the weakening of the US dollar.