Investors have many reasons to look for safe havens, especially in recent years. But gold has yet to hit $1,900/oz. Although it could make it that high eventually, it’s still notable that it’s taking so long. The phenomenon could be explained by some basic factors, along with other strange things that are happening in Forex.
The clouds are rising
The list of reasons gold bulls have to support their position could be quite long. From the longer term expectation of a recession, to the more immediate worries around the “balloon crisis” between the US and China. In fact, after the US confirmed shooting down as many as four “objects” in the last few days, risk appetite rallied. Stock markets rose at the expense safe havens such as gold.
Even with the dollar getting weaker recently, gold still hasn’t managed to move up as much as anticipated. Other, less well-known events are happening in the gold space. Freeport cut production in Indonesia because of floods. Meanwhile, China’s bought up over $5B in gold over the last month, adding it to their reserves. This was China’s third month of growth in reserves, which is consistent with the global central banks expanding…
