What is the Price of Gold?

Gold prices UK has been below $1,300 an ounce at the start of the year, but now it is over $1,500. This is a six-year high rate, and many investors have opted for the yellow metal amidst rising tensions in the political conditions and unpredictability in the global economies.

In a few days, the price of gold UK increased by over $100 an ounce, and experts are trying to scrutinize the factors responsible for the growth and the factors that can help them identify the peaks.

There are many things in support of the price of gold UK. The yellow metal is a safe haven for people who fear the trade battle between the US and China.

The two countries are now getting back on track where they may settle the difference this year, and investors have been waiting for the announcement of such a settlement. Still, the US announced that it would impose a further $300 billion in tariffs on Chinese goods at 10%, as the negotiation is expected to take place.

On the other hand, China halted the purchase of the US farm produce, and the two sides are trying to battle out, while the other countries cannot contemplate the next moves.

The global economic condition has stagnated, and central banks are starting to feel the heat of recession.

Governments are cutting interest rates, and the markets are entering a global battle with new lows in currency devaluation.

It seems the weakness of the global financial markets is accessible to all, and they are exploiting it without any restrictions.

Further, there are market tensions over the impact of Brexit on European economies. The pending UK exit is another danger, making it difficult for politicians to get a clear perceptible plan.

There are threats of the UK leaving the EU without a deal on October 31. This condition can lead to another phase of volatility, supporting gold prices in the UK.

Further, negative bond yields and lower interest rates also make the yellow metal attractive. Even Germany and Japan’s government debts have negative yields, and the yellow metal provides an opportunity to invest in zero-yield options.

According to Deutsche Bank, about $15 trillion of government bonds, 25 per cent of the total market, are now trading at a negative yield.

The price of gold UK is expected to be over $2000 if the US Sino trade war takes undesirable turns and the UK exits the EU without a deal. The gain in precious metals provides attractive opportunities to investors.

Others expect the market to go up and then undergo a pullback. Other global factors will determine much.

How much is Gold worth?

Currently, the metal is trading at $1545.90, and the sustained growth in rates shows the presence of buyers at this rate, which can create adequate momentum. If the buying grows, many new buyers will try to enter at smaller corrections.

If the movement below $1545 continues for a long time, it may indicate investors are selling gold, which can trigger a downside.

To learn more about Gold investment options, click 99 Alternatives at (http://www.99alternatives.com).