Forecast: Gold price will continue to fall

Baku. 4 July. REPORT.AZ/ Price of gold has dropped to $ 1 219.33/ounce in world markets. 

Report informs, decline in gold is due to the increased interest in risky assets in global financial markets. Thus, as a result of the global economic growth rate approaching to 3% in 2017, investors are targeted at stock exchanges and emerging markets. Notably, gold is a financial asset that does not generate dividends and primarily focused on avoiding the risk of crisis.

Analytical Group of Report believes, decline in gold is also due to the rapid increase in its price since the beginning of 2017. Thus, gold, which started with $ 1,150 / ounce, rose to $ 1,299 / ounce on 6 June. This is an increase of 13%.

"It is expected that the price of gold will drop to $ 75/ounce or 5.8% from the maximum level of the year. The price is projected to fall below $ 1,200/ounce this year”, analysts said.

Notably, continuation of raising discount rates by US and European central banks will further reduce gold.