Did you know the gold price has broken its historical record since 2011 ? It has reached higher two thousand dollars an ounce. Experts believe this is not the maximum. It can be much higher. What factors have an impact on the value of the precious material ? What may change ? What are the experts opinions ?
What influences the change in the price of gold?
The economic crisis of 2020 has affected the conomies of the most developed countries. The USA and others countries print trillions of dollars and borrow them at zero interest rates. These are forced steps to stimulate the movement of dead economies as soon as possible.
It is better not to use currency as reserves for large investors. So gold becomes a very attractive asset because its value increases when the dollar depreciates. They are interrelated.
Experts note that they have not yet seen the printing of money on such a scale. There is a large probability that the value of gold will rise to four thousand dollars in three years.
The following factors affect the cost of precious material:
· US Presidential Election
· Date of the Covid-19 vaccine development
The officially recognized and safe vaccine creating will defeat a dangerous virus. It will help to open borders and launch the world economy in full. The faster it is will happen the less investors will invest in gold. It will be profitable save in a currency. It will rise rapidly against the background of global economic growth.
The precious metal will remain one of the most reliable and more profitable capital until the pandemic disappears.
How can the US presidential election affect the value of gold? The United States affects many of the world’s economic, social and political processes. So the head election of this powerful country will definitely affect the stock markets.
After Trump’s victory over the candidate from Democrats Hillary Clinton in the 2016, investors quickly turned some of their capital into gold. The value of the metal increased by five percent.
Experts predict the price of gold per ounce may fall to $ 1,600 after this year’s election. The gold will stop growing so fast if the world economy stabilizes.
