Report: Price of gold will sharply increase

Forecast: Price of gold can increase to 1 400 USD/ounce on world markets

Baku. 3 May. REPORT.AZ/ After fall in price of gold within 3 years due to some changes on the world market a sharp rise to the level of 1 400 USD/ounce is expected. 

Report informs, before the crisis, on September 5, 2011 the price of gold increased to the maximum historical level - 1 911,60 USD/ounce and on November 23, 2015 fell to 1 079,4 USD/ounce. As a result there was a decrease of 43.5% or 832.2 USD.

When the US Federal Reserve System (FRS) in December 2015 increased discount rate, the price of gold fell to its lowest level.Crisis in the global financial markets since the beginning of this year, increased demand for gold as a safe financial instrument.The factor of delaying Fed's decision to raise interest rates began to increase price of gold and compared to the minimum level sold on November 23 increased by 20% and reached 1 300 USD/ounce.

Negative interest rate by European (ECB) and Bank of Japan (BOJ), the Fed's position of expectation, continued recession and uncertainty in global financial markets increased demand for gold.Gold's recent sharp rise last week, caused by BOJ's surprise decision to wait about monetary expansion.

Analytical Group of Report News Agency believes that price of gold can increase to 1 400 USD/ounce on world market. "In general, it is not excluded that the price of gold for 2016 will be the highest revenue-generating financial assets.

This is also due to the strategy pursued by investment funds - raising operations of gold assets."

If you find out orphographic mistake in the text, please select mistaken part of the text and press Ctrl + Enter.

Last added

All news