As global stock markets continue soaring higher up the trend, some assets are specifically seeing higher highs on a daily base. These assets have been “catching” the eyes of many investors. One of such is Gold!
Just a few months ago the price of gold had moved passed a very critical psychological level. Its price has reached the $1800 mark. This had sent a very strong signal to the investors who were already looking at the daring market. Now it is a whole new game. The main driving forces for this movement are the pandemic and the Ukraine-Russian Crisis. It is important to note that gold has not passed this level since 2011.
How deeply has this change in price affected the world?
Is there a way you can take advantage of it?
These are some of the few questions we will strive to answer.
The war in Ukraine has been a major factor in the increase in the price of gold. Everybody is on the edge, the market not being left out! What is going on here?
Well, with war comes great uncertainty. The effect the war would have on some currencies is not yet known. So obviously, the fear of the unknown sets in. With an increase in the level of tension, investors begin to look for safe haven, commodities that pose a lower risk of losing their value. This is where precious metals come in. You see it is pretty hard for gold to rapidly lose value.
Given this scenario, one would see investors looking for ways they can convert their funds to assets that are not likely going to lose value rapidly. The search for gold resurfaces, and guess what happens when there is an increase in demand? Yep, you got it price increases and it is increasing very fast as we speak.
This surging price of goal is very much dependent on the crisis in Ukraine. This is evident as gold is not ignoring major central banks in its current movement. If the war was to seize, we will see a rapid price reduction.
So it is recommended that one should be careful when moving its reserve fund to gold. Exploit other options. Opting for crypto would not be a bad idea.
That said, so far the war continues, we are likely to see many irregularities in the market. So trading safely, and always seek out expert advice.