GOLD PRICE INCREASES BACK TO THE LEVEL OF $ 1,900.00

08.12.2020
Market News
8th Dec. - The price of gold has risen again since the fall a few weeks ago. This week, the gold price continues to rise and is now approaching the $ 1900.00 level.

The price of gold traded around $ 1871.00 per ounce today compared to $ 1760.00 in early December 2020. According to some market analysts, the increase was due to the depreciation of the US dollar in recent weeks.

The US Dollar experienced a significant devaluation against several other world currencies, prompting investors to choose safer and crisis-proof investments such as gold. Furthermore, the situation in the European zone where BREXIT negotiations are still going on and the uncertainty of the geo-political situation there has led investors to choose to avoid the risk of speculation of currency depreciation caused by the political crisis there.

The price of gold will usually increase when announcements on economic stimulus as well as weak monetary policy occur. News of the possibility that the US government will work towards reaching a budget agreement on behalf of the congress while avoiding a "shut down" and preparations to inject a total of $ 908 billion dollars to continue to deal with the current challenging economic situation.

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AHMAD FAIZUDDIN BIN RAZALI

CHIEF ANALYST OF CDG GLOBAL