The gold prices are strong gradually increasing on global factors like Brexit deal, Trade War, Middle East tensions and World Economic growth. The following factors will influence the gold to touch $2000:
The World Gold Council’s 2019 figures show that total demand was increased by 7% YoY.
Central Banks bought 145.5 tonnes, which is up 68% YoY. The reason in increased demand for gold is for diversification and for safe, liquid assets.
ETFs added 40.3 tonnes with an increase of 49% YoY. But gold coin and bar investment fell by 1% and appliances usage of gold fell by 3%. Indian jewellery demand boosted up 5%.
Investors stopped investing in Stock markets and diversified to gold. Trump is also one of the reason for diversification. He sacked FBI director Comey, the stock market fell nearly 0.85% at the same time gold increased by 1%.
The trade war is a key factor for increasing the demand for gold. After Trump and Xi had not met a deal for tariffs the gold have fallen down. But still the negotiations are going on. Iran’s drone has been shot by U.S recently. This also spurred the gold market. The uncertainty in Brexit deal also makes the investors to turn towards gold. Overall, the global economy is in bad shape inclusive of U.S. The raising inflation is the biggest worry for U.S and so expecting a Fed interest rate cut in July 2019. If fed cuts interest rate the gold will raise up.