Baku. 20 July 20. REPORT.AZ/ The recent geopolitical uncertainties and the US-China trade war had to
increase gold market as safe investment instrument but the counter-process takes place.
Analytical Group of Report believes, on the one hand it is due to the strong US economic base, in the background of the rise in US dollar rate it leads to profitability from investment in US dollar.
US Federal Reserve System (FED) is expected to increase its discount rate several times by the end of this year. This means that, US dollar will continue to rise. Finally, investors do not seem to be interested in turning to gold.
On the other hand, China's demand for gold in China which is in trade was with US is diminishing. Last year, China was the largest buyer of precious metals but this year it is expected to import relatively less gold. Ultimately, the gold price more likely to decline than raise.
Currently, the price of 1 ounce of gold at commodity exchanges is around $ 1,202. The decline in demand, as well as the proximity factors, can reduce the price below $ 1,200 to $ 1,181-1,199 in the next few days.