An expert in financial markets expected gold prices to rise to 1700 in 2020.
According to ArabiaNet, Amr Abdo, the founding partner of the American Market Trader Academy for Financial Market Studies, said that this was due to the entry of very large liquidity that saw other safe havens as the advantage of gold, but that faded.
There are 3 factors that support the rise of gold prices, and one of these advantages is the variables in interest between gold and bonds. There are between 14 to 16 trillion dollars of bonds giving negative returns. This liquidity finds that the risk of owning these bonds is not due and therefore part of this liquidity belongs to gold. On the other hand, geopolitical factors lead many central banks to continue to buy gold in very large quantities. In addition, many investors entered to invest in gold.
Elia Spivac, the Daily Fix's currency market analyst, said the downturn seemed mostly to a correction because ... not only is the gold that we see falling somewhat in terms of risk aversion dynamics, but across diverse assets.
Gold prices fell on Thursday after China revealed measures to reduce the economic impact of the outbreak of the Corona virus, but the metal remained near its highest level in nearly seven years, which was recorded in the previous session with continued concerns about the disease.
At 07:49 GMT, the spot price of gold was down 0.3% to $ 1606.62 an ounce. And US gold futures fell 0.1% to $ 1609.60.
In other precious metals, palladium, which has a shortfall in supply, fell 0.9% to $ 2688.40 an ounce, after touching a record peak of $ 2841.54 in the previous session.
Silver fell 0.5 percent to 18.30 dollars, but hovered near its highest level in more than a month recorded on Wednesday. And Platinum fell 1.2% to $ 993.40 an ounce.
