
Gold is once again in demand from investors: its price reached $3343 per ounce. It rose in price for the fourth day in a row, as investors opposed US President Donald Trump’s plan to cut taxes and the growing budget deficit. As a result, the long-term yield on US Treasury bonds reached almost the highest level in the last twenty years.
Investors’ fears were confirmed by a historically weak auction of 20-year bonds worth $16 billion.
According to analysts, the price of gold is also rising on the back of a weakening dollar and a possible increase in geopolitical risks around the Middle East
Thus, starting from Wednesday, May 21, the price of June gold futures on the New York Comex exchange rose by $19.21 against the previous close, or 0.58% – to $3,303.81 per troy ounce. July silver futures rose by 0.35% to $33.29 per ounce.
The dollar index (the rate against a basket of currencies of six countries – trading partners of the United States) fell by 0.43% – to 99.6 points. Weakening dollar increases demand for gold from holders of other foreign currencies.
The demand for gold as a “safe haven asset” also grows in case of macroeconomic instability or increased geopolitical risks in the world.