International Gold Kitco News: Gold Prices Surge Amidst Economic Uncertainty
August 25, 2023
New York – Gold prices surged sharply on Friday, reaching their highest levels in seven months, as investors flocked to the safe-haven asset amidst rising global economic uncertainty. The precious metal has been benefiting from a combination of factors, including concerns over the ongoing COVID-19 pandemic, escalating trade tensions, and geopolitical risks.
According to Kitco News, the spot gold price spiked above $1,800 an ounce for the first time since February 2022. The yellow metal has gained nearly 10% in the past month alone, fueled by flight-to-quality buying.
“Gold is seen as a safe haven during times of uncertainty, and there is no shortage of uncertainty in the world right now,” said Kitco senior analyst Jim Wyckoff. “The COVID-19 pandemic is still a major concern, and there are fears that a second wave could hit the global economy.”
Investors are also worried about the escalating trade tensions between the United States and China. The two superpowers have been locked in a trade war for more than two years, and there are growing concerns that the conflict could escalate into a full-blown trade war.
Geopolitical risks are also weighing on investor sentiment. The ongoing crisis in Ukraine, the tensions in the Middle East, and the increasing military activity in the South China Sea are all contributing to the heightened sense of uncertainty.
“All of these factors are creating a very bullish environment for gold,” said Wyckoff. “Investors are turning to gold as a way to protect their wealth from the increasing risks.”
The strong demand for physical gold is also supporting prices. Leading gold retailers are reporting a surge in demand for gold coins and bars from both retail investors and institutions.
“Physical gold is in high demand,” said Ronald Leung, CEO of Lee Cheong Gold Dealers in Hong Kong. “Investors are looking to hold physical gold as a store of value in these uncertain times.”
Analysts believe that the gold rally is likely to continue in the near term. The ongoing economic uncertainty is expected to remain a major driver for gold demand.
“Gold is poised to break out of its current trading range and move higher,” said Wyckoff. “We could see gold prices test the $1,900 an ounce level in the coming weeks.”
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