Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
bubble in the market
Analytics

Analyst Julius Baer: there is a bubble in the precious metals market

19.01.2021
2 min read

What factors form a bubble in the gold market

The demand for gold continues to grow. The cost of the precious metal continues to hit historic highs, last week they asked 2 thousand dollars per ounce. Experts are afraid that a bubble has formed in the market, which may have a negative impact on global processes.
According to Carsten Menke, a specialist of the Swiss bank Julius Baer, the price of gold is rising in response to sentiment on the stock exchanges, which is due to the probability of an increase in the volume of infusion of dollars. Printing the U.S. currency may lead to the collapse of its rate and rapid inflation, which will affect the global market.
Now the price of a troy ounce of precious metal is 2072.8 dollars, but experts predict that in the coming days it will fall to 2040 dollars.
Another factor that contributes to the rise in gold prices is the reduction of key interest rates, which is observed in many central banks. In addition, the economic stimulus programs introduced by the U.S. and the European Union are also affected. These ways of maintaining markets after the collapse of the pandemic are reflected in the rate of inflation growth.
Analysts say demand for gold and, as a result, its price will increase as long as tensions between the U.S. and China are visible. The hand of precious metal quotes is also affected by the instability of the dollar and its weakening after the pandemic.

bubble in the market

However, despite the current depreciation of the U.S. currency, Carsten Menke says that this situation is cyclical rather than structural. There are now more signs of a bullish market, but this does not mean that the rally in the gold segment will end soon. Under the current circumstances, operations with precious metal are more interested in traders for short-term purposes. The bubble in the gold market will continue to grow for some time as long as the rally is observed, and after the dynamics slow down and stop. Everything happens in the scenario of assets of the same class, so do not panic.
It should be noted that gold and other precious metals have neither dividends nor coupons from which to receive income. Therefore, in this case it is necessary to maintain the position at a certain level by funding. This factor makes investing in precious metals for the long term not always appropriate. However, gold periodically begins to grow significantly in price, which increases the demand among new investors, and the positive dynamics are kept for some time, helping traders to earn. Interestingly, the rise in gold prices contributes to the rise in silver prices, which in just a month increased in value by 30%.

Tags: Analytics
0
Previous Post Video communications service Pexip is planning an initial public offering in Norway Next Post Nasdaq Inc has tightened its public offering rules for foreign companies

You Might Also Like

Tesla Inc
Analytics
Tesla Inc. is due to enter the S&P 500 Index: analysts overview
20.11.2020
fall in prices
Analytics
Fall in gold prices will happen by the end of the year: the opinion of the analyst of Freedom Finance
24.04.2021
High inflation: how to protect investments
Analytics
How to make high inflation work for yourself: views of the analyst
08.02.2022
OFZ market
Analytics
What does the OFZ market expect in the next quarter
16.10.2020
surge in copper prices-1
Analytics
Bank of America: we should expect the surge in copper prices in the near future
30.12.2021
factors affecting the ruble
Analytics
Finam company: main factors affecting the ruble
13.02.2022

Popular Posts

  • Li Ka Shing: How can success be achieved without money and education?
  • Skolkovo analysts: the Russian energy market is suffering losses
  • Ingeborg Mootz: a woman who became a stock player at the age of 75
  • Analysts: Egypt’s economy to continue falling in 2023

Editor's Picks

Chaslau Koniukh
Analytics

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Spokesperson
17.08.2020
Expert Chaslau Koniukh
Analytics

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Spokesperson
18.06.2020
expert Chaslau Koniukh
Analytics

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Spokesperson
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Analytics

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Spokesperson
16.05.2020

Popular Posts

  • Li Ka Shing: How can success be achieved without money and education?
  • Skolkovo analysts: the Russian energy market is suffering losses
  • Ingeborg Mootz: a woman who became a stock player at the age of 75
  • Analysts: Egypt’s economy to continue falling in 2023
  • Businessman Chuck Feeney: the man who gave the world Duty Free
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Instagram

© 2024 CHASLAU KONIUKH. ALL RIGHTS RESERVED. Expert in marketing and project management, international investments, financial analyst.

Menu

  • Biography
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Economy
  • Market terminology
  • Stock Market
  • World exchanges
  • Tech and Marketing
  • Analytics