Gold exceeds analysts’ expectations and jumps to $ 3500 an ounce today

Gold recorded a new level on Monday, bypassing the $ 3500 barrier an ounce, beating the expectations of investment banks that suggested this level by the end of the year. This rise came amid the decline in the US dollar and the escalation of trade tensions between the United States and China, which strengthened the demand for yellow metal as a safe haven.

What is the reason for the rise of sharp gold?

Investors went strongly towards gold, in light of the dollar reaching its lowest level in three years. The futures futures have increased by more than 30% since the beginning of the year, and about 8% since US President Donald Trump announced the imposition of comprehensive customs duties on April 2.

The price of instant gold today

The instant gold price increased by more than 3% to 3480.91 dollars per ounce, recording its highest level ever. The most active American gold contract increased by more than 3.2%. The price of the gold recorded June earlier 3442.30 dollars per ounce.

Gold breaks the historical records

With this rise, gold exceeded the record in 1980, when it was circulated at 850 dollars an ounce, which is equivalent to a much higher value when modified according to the current inflation.

The threat of federal independence ignites the markets

US President Donald Trump has returned to attack the Federal Reserve Chairman, Jerome Powell, describing him as a “great loser”, and demanded the central bank to reduce interest rates immediately.

Trump said last week that Powell’s dismissal “could not take place enough”, following the Powell warnings that the customs duties imposed by Trump could lead to high inflation in the short term.

For his part, the White House’s economic advisor, Kevin Haysit, stated that Trump is already studying the possibility of dismissing the Federal President.

Commenting on this escalation, Christopher Wong, a strategic expert at Oversia China Banking Corp, told Bloomberg: “Powell’s dismissal not only undermines the independence of the central bank, but may lead to politicizing American monetary policy, which may destabilize the markets of the markets.”

He added: “If the credibility of the federal reserve is shaken, this may weaken the trust in the dollar, and accelerate the flows towards safe havens, on top of which is gold.”

What analysts say about the future of gold

Gold increased strongly this year with the loss of global markets for confidence in American economic policy, and the increase in central bank purchases around the world from the precious metal.

The Bank of City had expected earlier that gold would reach $ 3500 in the next three months, based on the superiority of the investment demand for the supply of the mining sector.