Why the chaos of emerging markets has struck gold

Against the background of turbulence in emerging markets, gold marks the worst performance this year. The price of the precious metal marked a sharp surge in the growing trade volumes, rising interest rates and a rising dollar. James Poole, Bloomberg, commented on the subject.

With such geopolitical tensions, concerns about the world trade war and unpredictability of the American president in the past, people would focus on precious metals such as gold. But instead, people turned to dollar and dollar-denominated assets, such as US government bonds, he said. Hedge funds and other speculators in New York cut their gold bets, have had the most bearish positions on gold since 2006, and investors cut their positions in gold-related gold funds. According to Poole, the future of gold depends largely on the direction of the dollar. If the dollar is weaker, it is possible to grow gold. Poli is more optimistic about gold in the long term, but it does not predict any significant appreciation in the short term. the precious metal.

bloombergtv.bg

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