Chat with us, powered by LiveChat

Gold Returns to Positive Territory


Updated: March 21, 2022

Volatility Market
Editor’s Note:

Gold products are back on the rise after a slight drop in prices over the last few weeks. Prices reached a two-week high when the market closed today. Gold settled at $1,269.90 per ounce, up .6 percent, while the dollar was down .1 percent. When the dollar weakens, this usually boosts the price of gold. This happens because investors who hold other currencies can afford to buy more of the precious metal.

Defend Yourself Against A Volatile Global Economy. Click Here To Download Our FREE Investor's Power Guide!

Another factor that is bullish for gold are September’s inflation numbers, which diminished the expectation of an interest rate increase for many. However, other investors still hope that the Federal Reserve will drive interest rates up before the year ends. Since gold doesn’t pay interest, bears predict this could stoke a drop in prices for gold products. Either way, with the volatile economy and weakened currency, it pays to invest in the safe haven that gold provides.

Physical Demand is Rising

The surge in gold prices this year was driven mostly by speculation, as opposed to actual physical demand. Regardless of whether the hike in interest rates comes to fruition, physical demand across the globe is rising. Industrial production in major economies continues to increase and the wedding and festive season in India has arrived, which is when their need for precious metals peaks.

Recent data from China, one of the largest importers of gold and other precious metals, shows that their economy grew 6.7 percent and industrial production rose 6.1 percent during the last quarter. As the world’s second-largest economy shows the best growth factors across the globe right now, the country’s demand for gold products is expected to increase.

Whether an interest rate hike occurs, so many other factors impact the markets right now. The United States presidential election is a only a few weeks away and has investors on edge. Many believe there will be market repercussions regardless of which candidate is elected.

Visit this link for more information about buying gold products and other precious metals online.

No Investment Advice

GSI Exchange is a publisher and precious metals retailer. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You understand that the Content on the Site is provided for information purposes only, and none of the information contained on the Site constitutes an offer, solicitation or recommendation to buy or sell a security. You understand that the GSI Exchange receives neither monetary or securities compensation for our services. GSI stands to benefit from the sell of retail cost precious metals on this site. To avoid hidden costs all prices are listed live 24/7 on this site. Read the full disclaimer

GSI Exchange Infokit - evergreen



Precious Metals and Currency Data Powered by nFusion Solutions