1:53 AM
In general, many market participants believe that the dollar has to decline one day and may even collapse, but when? No one knows, but everyone knows that gold is the root of the fundamental hedge against the depreciation of the dollar, so when investors believe that the value of the dollar tends to decline; gold is always the solution.
The dollar's rise, despite expectations of interest rate hikes, is further reinforced by the US administration's desire to keep the dollar at current levels. US Treasury Secretary Stephen Menochin said recently that "the dollar's decline has benefited the trade balance" Of the currency in the first place »explaining that the weakness of the dollar is not a concern for him, which reveals the strategy of the current US administration, which works to address the deficit trade balance in the first place, which will ultimately be in the interest of gold prices.
Stocks: Heavy volatility in money markets strengthens gold position
Although some believe that there is no fixed correlation between gold and equity prices, high volatility in equities and lower investment returns in most sectors in light of the dollar's decline are considered by many analysts to be the main drivers of gold's rise. Will be limited amid these fluctuations, so gold will be a safe haven for many investors who do not want to risk.
On February 2, the three main indices of US stocks fell, with the Dow Jones Industrial Average losing the biggest percentage loss since June 2016, shedding 2.54%, while the broader S & P 500 The Nasdaq Composite Index fell 1.96%. The week ended Feb. 2, the worst week for Dow Jones and S & P since January 2016, and the worst week for Nasdaq since February 2016.
The dollar's rise, despite expectations of interest rate hikes, is further reinforced by the US administration's desire to keep the dollar at current levels. US Treasury Secretary Stephen Menochin said recently that "the dollar's decline has benefited the trade balance" Of the currency in the first place »explaining that the weakness of the dollar is not a concern for him, which reveals the strategy of the current US administration, which works to address the deficit trade balance in the first place, which will ultimately be in the interest of gold prices.
Stocks: Heavy volatility in money markets strengthens gold position
Although some believe that there is no fixed correlation between gold and equity prices, high volatility in equities and lower investment returns in most sectors in light of the dollar's decline are considered by many analysts to be the main drivers of gold's rise. Will be limited amid these fluctuations, so gold will be a safe haven for many investors who do not want to risk.
On February 2, the three main indices of US stocks fell, with the Dow Jones Industrial Average losing the biggest percentage loss since June 2016, shedding 2.54%, while the broader S & P 500 The Nasdaq Composite Index fell 1.96%. The week ended Feb. 2, the worst week for Dow Jones and S & P since January 2016, and the worst week for Nasdaq since February 2016.
Europe's biggest weekly loss in more than a year in the week ending February 2, as risk appetite eased amid losses across sectors. The Stoxx 600 index fell 13 During the week, its worst weekly loss since November 2016.
These sharp fluctuations in the stock markets reversed their recovery last year. The indices recorded the largest rise in their history in 2017, by about 22% on average, while Wall Street, the world's largest stock market, recorded a growth rate of 27%, indicating that the year The current will not be as its predecessor, which makes gold the best option, which will increase the demand for it.
"The current conditions in the financial markets are reminiscent of what they were in 2006, before the financial crisis," Barclays Bank chief executive Jess Staley said. "The nominal value of assets is currently very high, In the event of any risk, we will see a heavy sell-off of investors to avoid losses, which of course means a significant drop in stocks, that is, the risk ratio in the stock market is large, which strengthens the status of gold as a safe haven.
These sharp fluctuations in the stock markets reversed their recovery last year. The indices recorded the largest rise in their history in 2017, by about 22% on average, while Wall Street, the world's largest stock market, recorded a growth rate of 27%, indicating that the year The current will not be as its predecessor, which makes gold the best option, which will increase the demand for it.
"The current conditions in the financial markets are reminiscent of what they were in 2006, before the financial crisis," Barclays Bank chief executive Jess Staley said. "The nominal value of assets is currently very high, In the event of any risk, we will see a heavy sell-off of investors to avoid losses, which of course means a significant drop in stocks, that is, the risk ratio in the stock market is large, which strengthens the status of gold as a safe haven.
0 التعليقات:
Post a Comment