Washington / London – Given the political instability and indications of global economic slowdown, the gold prices have soared tremendously. In the international markets, the spot gold climbed to $1,281 per ounce while the gold futures were recorded at $1,283.20 per ounce. The surge in gold prices was evidently at a six-month record high.
For the last few days, the United States is undergoing severe turbulence, the effects of which have begun to emerge globally. Due to US President Trump’s announcement of withdrawal from Syria, the resignation of Defence Secretary James Mattis, increase in interest rates by the Federal Reserve and the Shutdown, the international share markets and also the economy show signs of a plunge. Last week, the American, as well as the global markets, were at a record low.
It has caused an impact on crude oil rates, currency and production rates. On Tuesday, oil prices plummeted by 6% and the Brent Crude was down to $50 per barrel. Even in the US, oil prices dropped by 6.5% recording $42.53 per barrel. The oil rates are reportedly the lowest recorded in the last 16 months.
The Gold rates have surged amid sliding share markets, oil prices and currencies. Transactions on Monday recorded gold prices at $1271.40 per ounce. After that, gold prices are on the rise, and in the last three days, they have gained by more than $10. Gold prices extended gains Friday, taking spot bullion to $1,281 per ounce. Whereas, US gold futures were up at 1,283.20 per ounce.
The Singapore-based gold analyst, Bryan Lan justified the sharp rise in gold rates by saying that the common man and investors are currently considering gold to be the only safe investment. Additionally, the market experts in gold have highlighted the geopolitical uncertainties and forecast gold prices to move higher to $1300 per ounce shortly.
Two months ago, a World Trade Organisation (WTO) report underscored the geopolitical tensions in various parts of the world. The report also stated a staggering 42% rise in the demand for gold in the first six months of 2018. Also, the top gold buyers in the world in the first six months of the year include Russia, Turkey and Hungary.