Gold found support, plans to increase its value

Exchange Rates 01.06.2020 analysis

The price of gold increased this morning, caused by riots in major cities in the United States of America. Market participants are already so scared by the ongoing escalation of the US-China trade war, and the news of the riots only added agitation. Against this background, investors chose to keep their assets in a calmer and safer harbor, which is the precious metals market. The start of the weakening of the greenback only adds fuel to an already well-flaming fire.

The price of gold this morning has increased by 0.66% and reached the level of $ 1,737.68 per troy ounce.

As it became known, the American authorities had to resort to the National Guard detachments in fifteen states at once, since other measures to contain the riots that had begun were ineffective. Recall that the protests unfolded against the news of the death of African-American George Floyd, who had previously been detained by the police. Later, the protest moved to a more serious level and was accompanied by fierce clashes with the police and looting.

The tension is also growing on the news that the conflict between Washington and Beijing still will not go into the stage of reconciliation and compromise. The situation around Hong Kong is heating up, although at a less significant pace, which analysts expected. This will force investors to abandon risky transactions and move to the precious metals sector.

According to experts, such a situation will last at least until the end of this year, from which we can conclude that for a long-term plan, gold will now come in handy. Market participants are looking for a safe-haven asset, which gives an opportunity to the bulls to intensify their activities.

Meanwhile, the cost of palladium decreased by 0.19% and reached the mark of 1,940.74 per troy ounce. Silver, on the contrary, increased significantly by 1.81% in price and stood at $ 18.16 per troy ounce. The cost of platinum also rose by 0.49%, which allowed it to move to the level of 842.34 dollars per ounce.

Source: Gold found support, plans to increase its value

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