Daily Management Review

Global gold prices rise above $ 1,400 per ounce for the first time since September 2013


World prices for gold with immediate delivery rose on exchanges in Asia by 1.7% to $ 1,411.63 per ounce. The cost of gold rose above $ 1,400 per ounce for the first time since September 2013.

The August gold futures in New York rose to $ 1,409.1 an ounce, then fell slightly, to $ 1,395.9 an ounce.

Investors began to invest in gold due to rising tensions in the world. Iran shot down an American drone in the southern province of Hormozgan. The US Department of Defense confirmed destruction of the drone, but stated that the machine was shot down in international airspace over the Strait of Hormuz.

“Iran made a very big mistake,” said US President Donald Trump on Twitter. According to The New York Times, Trump allowed a strike on Iran, but canceled the operation at the last minute.

Gold prices also began to rise due to the easing policy of the US Federal Reserve System. The Fed’s statements of the Fed after the meeting on June 18-19 are regarded by traders as a signal that the Fed can reduce the rate at the next meeting. This led to a weakening of the US dollar, which favorably affected the value of gold.

source: bloomberg.com