We have a breakthrough in the gold market. For the first time since 2011, gold bullion quotations were above $ 1,800 per Trojan ounce.
Gold prices with a new breakthrough
Barrier 1800 USD / oz. has been broken. This is the first such success of bulls on this market since September 2011. At that time, the price of gold was 1920 USD / oz. In 2012, 1800 USD / oz was already a resistance that somehow blocked a return to the bull market.
“On Wednesday at 8:48, the gold futures exchange rate was $ 1802.55 per Trojan ounce and was 0.25 percent higher. higher than the day before. Since the beginning of the year, the dollar price of yellow metal has risen by nearly 18 percent.
It is worth noting that in April and May gold prices reached new records in many other currencies, including the euro, Swiss franc and Polish zloty. Converting the current bullion price through the current USD / PLN exchange rate, one ounce of gold is valued at approximately PLN 7060. In May it was even 7452 PLN / oz. It’s so-called spot price. The purchase of a single ounce gold bullion coin now costs about PLN 7.6-8.1 “
– we read on Bankier.pl in the article by Krzysztof Kolany.
Where did these increases come from?
Where did these price jumps come from? It’s obvious – gold gains during economic crises. Anyway, it began to grow strongly on the chart just this year, when the coronavirus pandemic hit the global economy.
However, it is not about the recession itself, but about the actions of central banks at that time. Authorities have probably acknowledged that they will “print” current market problems. Hence the unprecedented printing of currencies – mainly dollars.
So investors began to respond naturally to such a scale of printing money and fiscal deficits by buying something that can’t be printed: gold.
However, a decrease in gold sales was observed in China. The reason is probably a real decline in the population’s income and restrictions on the import of ore.
The above strategy – buying an asset whose supply is limited – also leads many to think that Bitcoin will also benefit during the economic crisis, because its supply is also, as we know, limited by the algorithm.