The current sharp rise in gold prices can be called a “bubble”, says Alexander Belyakov, an analyst at Investkafe.
As the expert points out, “gold is growing at a fantastic rate, reaching new heights.” Its price has already exceeded the mark of $ 1,750 per troy ounce, which makes this precious metal more expensive than platinum. On August 9, a new high was recorded on the COMEX stock market: $ 1,776.8, while total growth since July 1, 2011 amounted to $ 290, which is the largest monthly increase in recent years.
“The sharp jump in quotas has been caused by growing problems in Europe and the United States. The downgrade of credit ratings, particularly recent developments in the U.S. economy, has caused strong demand for gold as a safe haven for risky assets, ”Belyakov said in a comment.
In general, in his opinion, this situation of gold can be called “bubble”, but high metal prices do not affect in any way the world economic situation and no one will sell gold for no good reason, so growth can last for a while unknown ”…“ The only thing that can somehow reduce the price of gold in the future is a change in the monetary policy of the Federal Reserve System (the US Central Bank), whose meeting was held on August 9, ”the analyst recalls.