The analyst named the reasons for the increase in the value of gold
Gold continues to rise in price, reaching historic highs, and the main drivers of this growth are the trade policy of US President Donald Trump and the actions of the Federal Reserve System (FRS), Olga Veretennikova, vice president of Borsell analytical company, told Izvestia on July 10.
"The precious metal has grown by about 25% this year, setting a record in April, as Trump's attempts to reform trade policy increased uncertainty, forcing investors to look for safe assets," the analyst notes.
According to her, another growth factor was the purchase of gold by central banks. China announced its eighth consecutive month of purchases earlier this week, which also supports the market.
The main factors affecting the price of gold in the near future remain concerns about the US tariff policy and the Fed's further steps.
"The latest Fed minutes have shown disagreements among policy makers: 10 out of 19 executives expect at least two rate cuts before the end of the year, and seven do not predict any easing at all," the analyst explained.
At the same time, the high cost of borrowing usually holds back gold, as it does not generate interest. However, tariff-related uncertainty may increase demand for it as a risk-free asset.
"Given that gold is trading at historical highs, it is not worth waiting for a sharp increase. Most likely, it will continue to move up gradually, possibly to $3,500, and by the end of the year to $3,700 and above, if uncertainty persists," Veretennikova summed up.
On May 29, Fares Kilzie, the founder and head of CREON Group, said that the illegitimate restrictions of the United States and European Union countries, increased marginality of gold mining and the outstripping growth of global debt led to an increase in gold prices, which this spring exceeded $3.5 thousand per troy ounce for the first time in history. Along with the increase in gold purchases by central banks and the downgrade of the US sovereign rating, this led to record revenue from gold sales.
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