Baku. 22 October. REPORT.AZ/ Gold price has been fluctuating around $1,220 and $1,230 an ounce for ten days. On October 8-10, the gold price was below $1,200.
Report’s analytical group thinks that an increase in demand for precious gold is mainly related to uncertainty.
For example, budget deficit of Italy, one of the seven most developed economies, has sharply increased. Consequently, credit rating has been downgraded and this directs investors from Italy’s state bonds to the gold.
Moreover, Bank of England governor Mark Carney is expected to make statement at 7:20 p.m. tomorrow (Baku time). The governor is expected to make statement about Brexit. However, there is an uncertainty about what he will say. Investors still remain directed to the gold.
European Central Bank is expected to make an ‘interest decision’ at 3:45 p.m. on October 25. In spite of high expectation that the bank will keep interest rate unchanged, President of the ECB Mario Draghi’s planned speech after the meeting may ‘shake’ the financial markets. And this causes uncertainty in investors and directs them to gold.
Report’s analytical group thinks that gold price will not decline this week, on the contrary, it may rise up to $1,250 an ounce.