Gold prices continue to grow amid existing concerns for global economics

Sukhoi Log, Russia's largest gold field. Photo: Polys

Gold prices after a two-month break almost reached the level of US$1800 per ounce. In five days, prices have grown by almost 3.5%, that became mainly due lower rates in the United States, as well as the existing concerns about the outlook of the global economy.

The recovery in gold prices continues amid the conditions of low rates in the US market, as well as the existing concerns about the beginning of a third wave of the pandemic.

Still, according to some analysts, the current rise in prices is considered by professional investors as rather short-term trend. According to them, in the absence of demand from professional investors, the current rise in prices should not be considered as sustainable, depending on the value of 10-year US Treasury bonds.

The demand for the metal is primarily growing from the jewelry industry, which is recovering from the collapse of last year as well as from private investors.

One of the signals of the recovery of global demand for gold could be latest statistics from China, which shows that in March 2021 gold imports to the country amounted to 38.6 tons, which is the maximum since January 2020.

By: Eugen Gerden