The World Gold Council (WGC) published a review of the gold market, the main topic of which was the situation in the global economy. Due to the growth of geopolitical conflicts, recession may occur in many countries of the world.

The WGC review deals with the continuation of the trade conflict between the US and China, as well as the unresolved issue on Brexit. Both of these events significantly affect the global economy and the gold market in particular. Supporting factors will be other conflicts that have now subsided, but at any time they can again express themselves with renewed vigor.

Due to economic slowdowns, central banks of some countries of the world lowered their key rates in October this year. According to the Bank for International Settlements, this year approximately 60% of central banks lowered their rates, which is the highest value since the previous financial crisis.

But how does the global economy affect the gold market? The fact is that during economic growth, people are ready to buy more jewelry and they still have the means to invest, in particular in the technology sector. But even during the crisis, gold receives support from investors who want to protect their savings, as the precious metal is considered a protective asset-refuge.

It is also worth mentioning that at low interest rates of the Central Banks and negative yield on bonds, investments in gold become more attractive, as the cost of its storage decreases. Therefore, investors should closely monitor the future policies of leading central banks in the world regarding their interest rates. This will be one of the main supporting factors for the price of gold.