22.03.2016 16:20 Gold has risen in price considerably in the course of today's trading
Gold prices rose nearly 1 percent, updating yesterday's high, which was caused by increased demand for safe-haven assets after the terrorist attacks in Brussels reports. Belgian broadcaster RTBF reported that in the course of attacks killed 34 people. for the attacks claimed responsibility militants of the terrorist group "Islamic State." The level of terrorist threat in Belgium increased to the maximum. In addition, the authorities closed the country's borders.
"The current rise in price of gold is mainly due to the terrorist attacks in Brussels, - says the analyst of ABN Amro Georgette Boele -. Investors bought back the precious metal as a safe haven after yesterday's fall on Fed comments of representatives". Recall, on the eve of the head of the Federal Reserve Bank of Atlanta Dennis Lockhart said that there is the possibility of higher interest rates in April. "The economy may justify a rate hike later this year, and perhaps quite soon, however, the planned course or specific decisions on interest rates there.", - The politician said. Meanwhile, the head of the Federal Reserve Bank of San Francisco John Williams said he would support a rate hike at the meeting in April or June, if the economic data will remain within its expectations. Gold does not generate revenue, and it is difficult to compete with the profitable assets, such as Treasury bonds when interest rates are near zero. If in the long term interest rates remain unchanged, the gold, the price of which is denominated in dollars, will go up amid falling US currency. This year, prices for precious metals increased by almost 16% due to the instability in financial markets and concerns about the global economic downturn.
In addition, market participants drew attention to the data of the Customs Office of Switzerland, which showed that the export of gold fell to a 18-month low in February. Analysts believe that the physical demand for gold in China and India will also remain weak, at least until the end of March.
April futures price of gold on COMEX today rose to $ 1252.60 per ounce.