The increase in concerns about the trade war after the “reciprocity -based” customs tariffs announced by US President Donald Trump leads to sales pressure in the gold markets, while the sales pressure under strategists will be short -term and that gold demand will remain strong in the uncertainty environment created by tariffs.
After the tariff restoration in the markets, gold prices decreased last week on Friday, exceeding 2 percent.
The price of ounce of gold, 3 thousand 167.86 dollars yesterday after breaking record, due to uncertainties of tariff decreased to the level of 3 thousand 10 dollars.
Prices are thought to have declined because it may have received partial profits from golden positions in order to compensate for the losses of investors in stock markets.
According to gold and commodity strategists, the uncertainty of the tariff is expected to continue to increase the “safe port” charm and the purchases of the central banks are expected to support the gold demand.
World Golden Council Global Research President Juan Carlos Artigas, AA correspondent in his assessment, gold prices have been tending to rise since the beginning of the year, and the rapid price movements seen in recent months to see the price consolidation is common, he said.
Stating that there is still uncertainty about the ultimate effect of tariffs on the gold markets, Artigas said, “Some market participants may have received partial profits from their previous golden positions. However, our analyzes show that there are strong foundations that can support investment demand in the current environment. We also think that withdrawal (prices) can provide some relief to maintain consumer demand.” he said.
Artigas stated that reverse winds can be seen in the gold market in the current environment, short -term reactions may be experienced in the profit and news cycle, “After a consistent rise tendency in the last few months, many investors can welcome the last retreat, because gold has increased over 14 percent since the beginning of the year.” evaluated.
Gold purchases of central banks, especially China, will continue
Ing Think Commodity Strategist Ewa Manthey, at the beginning of the week after tariff statements due to a risk of global economic recession due to the risk of sales in stocks, he said.
Sometimes investors can sell gold to compensate for the losses in other assets, Manthey said, “But below the sales pressure underneath will be short -term, because the uncertainty of trade and tariff, the uncertainty and uncertainty will continue to be uncertain and unpredictable.” he said.
Manthey, “Central Banks, Trump’s unpredictable trade policy due to the effort to diversify the reserves, another factor expected to support gold prices in the future.” he said.
China Central Bank, despite the high prices in the March gold reserves in a row in a row 5th in a row expressing that Manthey, China is likely to continue this trend, he said.
Manthey pointed out that Trump added gold for about 10 months in the first period of the US Presidency, “We think that the central banks, geopolitical tensions and economic climate will continue to receive gold because it will force them to increase their allocation to safe port assets and that this will create a support for gold prices.” He said.
