The economist attributed the rise in gold prices to geopolitical tensions
The rise in gold prices, which reached $3,850 per ounce, is due to several factors, the main of which is geopolitical tensions. Yulia Khandoshko, CEO of the European broker Mind Money (ex "Cerih"), told Izvestia on September 29.
"Most likely, gold's growth will continue as long as there is geopolitical uncertainty in the world. Demand for the yellow metal is already very high, both from central banks and private investors, which supports its rapid growth to $3,850," the expert said.
According to Khandoshko, high demand for gold is supported not only by private investors, but also by central banks, which contributes to its growth. In addition, low interest rates, including the recent Fed cut by 25 basis points and possible subsequent cuts under pressure from US President Donald Trump, make this metal even more attractive. The expert predicts that the price of gold may soon exceed $3.9 thousand per ounce.
"Such growth is, of course, a negative signal for the global economy. The price of gold is a barometer of problems in the economy, and the higher it is, the worse things are in the world. However, for gold-exporting countries, this is still good news, as they can strengthen their currencies. On the other hand, countries with high dependence on gold imports may experience strong pressure on the currency from a sharp rise in prices," the economist stressed.
She added that rising prices could slow down economic growth in the short term, but at the same time become an important "insurance policy" for the financial system in the face of global instability.
On the same day, it was reported that the price of gold futures updated its historical maximum, reaching $3,850 per troy ounce. It was noted that as of 14:36 (Moscow time), the price increased to $3,853.8, and the change was 1.15%.
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