Although it may already have seemed that investors would forget about gold as a safe harbor for their free funds, the yellow metal once again claimed the floor. Its price soared to its highest level in the past month.
Tensions between the United States and China help gold
The troy ounce traded at more than $1770 in the first half of the week, and the price of gold futures rose to $1790 per troy ounce. Gold firmed in response to rising tensions between the United States and China in the wake of an official visit to Taiwan by Speaker of the U.S. House of Representatives, Nancy Pelosi. This is the first visit of its kind in 25 years.
Economic recession also pushes gold upward
The price of gold is also being pushed upward by growing fears of an economic recession that the world’s other major economies could fall into alongside the United States. Moreover, it is a combination of recession and high inflation, and gold was considered a safe harbor by investors in the past, which proved the negative effects of inflation on free cash resources prevent. Or at least moderate them. Silver, which solidified and more than 1 percent and got over $20 a troy ounce, is also gaining in value.
