Gold prices on a rally, set to test new highs of $1,450 per ounce

• The gold price crossed $1400/ ounce mark in 2019 after six years.
  
• US China trade war, tension in the middle east between the US and Iran have hampered global economy.
  
• No consensus on Brexit deal between Britain and the European Union is another reason for hike in gold price.
  
• The US-China meeting on the sidelines of the G20 summit in Tokyo, Japan will be instrumental for predicting future prices of gold.
  

Even after hitting a six year high, Gold prices are not showing signs of a slowdown. In fact, it is all set to test a new high of $1450 per ounce in the next few months, according to a CARE report.

Last week, the price of gold in the international markets reached its highest ever from 2013, to $1411 per ounce. But there are signs of further growth in prices unlike in 2013, when it tapered off soon after reaching the high.

“Gold’s rally now appears to be in progress as large volumes of currency across the world is being channeled to exchange-traded funds. This has been furthered by a more volatile political situation where investors are rushing to gold as a safe harbor,” as per the report.

The strengthening of gold is being attributed to weakening of the Dollar in the international markets. The US China trade war which has found no solution even after a series of meetings between diplomats from both sides, have forced investors to invest in gold.

Adding to that is the ongoing political turmoil in the Middle East due to ever rising tensions between the US and Iran over the Iran nuclear deal. The US sanctions on the country have tremendously hampered global trade.

There is also continued uncertainty over Brexit. The British government has not yet found a sound solution and are nearing a deal with a ‘no deal’, increasing volatility across international markets.

In the coming days, the prices of the yellow metal will largely be driven by perception.

“The G-20 summit this weekend would be of interest here as the US and China would be having talks to possibly sort out the trade issues which have been instrumental in the eruption of the trade war between these two nations,” the report says.

As the present, pressures do not seem to be ebbing, as the demand for physical metal is growing too.

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