MOSCOW, April 11The “gold rush” among central banks of developing countries, the flaring conflict in the Middle East, the fall of the Chinese stock market and real estate market, as well as expectations of a reduction in the key rate in the United States in the second half of the year are the main reasons for the rise in gold prices in the world, commented the head of the bank’s analytical department. BKF Maxim Osadchy.
The price of gold continues to rise on Friday, reaching a new historical high of $2,400 per troy ounce, trading data shows.
«»Firstly, the central banks of China, Turkey, India and other developing countries are actively buying gold. The example of the seizure of Russian and Iranian assets is a powerful incentive for such investments. Tensions in US-China relations are an additional incentive to replenish China's gold reserves. Central Bank of China Gold reserves have been increasing for the 17th month in a row,” notes Osadchiy.
The analyst named the second reason as the flaring conflict in the Middle East, and gold is a classic instrument for insuring geopolitical risks. The third reason is the reaction of the Chinese population to the fall of the Chinese stock market and real estate market, as a result of which the Chinese are actively buying gold as an alternative investment.
«The fourth reason is the expected transition in the second half of the year to lower the Fed key rate, which will lead to a decrease in the cost of American debt,» Osadchy concluded.