• Tower Technology Team

Gold Prices hit Historical High




Gold prices have moved beyond the resistance line of USD $2000 recently, reaching all-time highs at USD $2048 before tracking downwards by a small margin.


The rise in gold prices is linked to the fall in value of the US dollar and diminishing investor confidence in the Greenback, pushing up the value of the world’s most popular safe-haven asset.


Many experts agree that gold has further room to rise as investor confidence in the United States markets and its currency falls weekly.


The Australian Dollar typically also sees a rise in value parallel to gold prices increasing as a response to an emerging breakdown of the US dollar. While originally the USD surged during the initial stages of Coronavirus as a safe-haven staple currency, the subsequent mishandling of the pandemic has seen investors seeking alternate safe-haven investment options.


Many investors turn to gold as a means to offset inflation and the volatile nature of currencies in times of uncertainty. More still turn to investing in gold during uncertain economic periods, as the price of gold typically rises as economies falter, a fact traders acknowledge and bank upon during contractionary periods.


When interest rates are at zero or even in the negative, gold becomes an attractive alternative to mainstream investment options. While the yield is not as impressive as a solid stock portfolio or actively traded instruments, gold provides certainty through the very nature of it’s limited supply.


The world isn’t printing any new gold reserves.


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