Gold continues its amazing rise against the dollar with the continued demand
How did the metal rise again?
Investors rush to the assets of safe haven, such as gold, due to the increasing state of uncertainty about customs duties and their impact on the economy, led to the high prices of yellow metal by more than 25% since 1.43% in a day.
Also read: Why is gold a good safe haven yet despite its high prices?
What analysts say?
About this, analysts at UPS bank stated and said that “the need to increase the deliberative and storehouse of gold has become greater than before and has become more urgent than ever under this environment than the escalation of uncertainty about customs duties, poor growth, high inflation, geopolitical risks and the desire to diversify investments away from American assets and US dollars.”
Central bank purchases
Moreover, central banks governors added gold to their investment portfolios.
China, which is the largest gold consumer in the world, added gold mineral to its investments for the fifth consecutive month, which strengthened its request to the precious metal as a safe haven in light of the escalation of global trade and geopolitical tensions.
Federal Reserve Chairman
On the other hand, Jerome Powell, head of the Federal Reserve, adopted a hard -line stance last week, which reduced the possibility of reducing interest rates in June.
Meanwhile, Mary Dali, President of the Federal Reserve Bank in San Francisco, said on Friday that the US economy is in a good situation despite the slowdown in some sectors, and this in turn may raise the value of the US dollar and negatively affect the prices of basic commodities denominated in US dollars.
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