Gold price is in rise

Question

Gold price is in increase. Why?

China reduces its currency value due to the ongoing trade war with the U.S.A.

The US also started to reduce its interest rates. If the interest rate is low, people will spend more money.

The value of the U.S dollar will become low. When the value of the U.S dollar reduces, the value of the Gold increases.

Buy Gold if you can. The price might reduce only when the trade war/currency war between the U.S & China stops. Also, there are reports indicating economic recession (I'm not sure how true is that).

You can buy Gold online and sell it when it reaches high.

Answer 1

I have some that we got when we first came here but the old man was an avid week-end gold hunter and has a whole case at his house of small nuggets and about 2 ounces of dust that he dug up.

Gold is always a safe buy and good to have in a good safe in case it's ever needed.

Although I think this trade war with China is just more crap, you never know.

Answer 2

But US interest rates have been very low for 10 years, yet there has been very little inflation of the US dollar during that time. Nevertheless, the price of gold increased dramatically between 2009-2012, but then collapsed in 2013, and has remained flat since then until recently, so I'm not sure exactly what caused these effects. Maybe the recent rise to US$1500/oz is due to uncertainty over the US-China trade war, in which case the price could suddenly collapse if a settlement is reached.

Answer 3

I did not know it.

Answer 4

Now the Gold is all-time high and will continue to rise. Chart - https://in.tradingview.com/symbols/XAUUSD/

Having 20% of the portfolio in Gold is good.

Comments

A continued rise is likely, because the huge US budget deficit this year (and subsequent borrowing) will likely lead to increased inflation.