Traders send gold to a 6-year high amid the global uncertainty in markets
The gold prices are now at 6-year high as investors keep plowing into the commodity amid the uncertainty on the global markets, Business Insider reported on Monday, Sept. 2.
At press time, the gold price was up 1.62% to $1544 per oz, which is the highest point for the asset since 2011.
Per the analysts cited by Business Insider, the prices of gold have risen due to the global political crisis and the trade war, as worried investors are preferring the fungible commodity to unbacked unstable fiat money.
This increased interest in gold is perhaps unsurprising. The recent inversion in the U.S. yield curve has spread mild panic among investors and driven them to invest in gold.
Every American recession since the 1950s has been preceded by an inversion in the preceding year. Investors are also plowing into bonds for the same reason, chief market analyst at Markets.com Neil Wilson observed.
According to CPB's world trade monitor, the world trade fell by 1.4% month-on-month in June after a mild gain of 0.6% in May.