Gold prices rose to an eight-month high

Gold prices in the course of trading rose to the level of June last year, setting a record eight-month, writes the Financial Times. The cost of one ounce of gold dostigla $1198,7. Last week, the growth in gold prices was 4.9%, the best weekly performance since July 2013.

Since the beginning of the year the price of gold increased by 13%, while Brent crude dropped by 11% and copper by 2%. As noted by Financial Times, gold prices grow amid falling oil prices, dollar weakness and concerns of international investors regarding the state of the global economy. According to James steel, HSBC analyst, the link between oil prices and gold exploded just after oil prices fell to $ 50 a barrel.

“There is generally a positive correlation between gold and oil. Gold tends to fall when oil is in decline,” Steele was quoted by the Financial Times. However, according to the analyst, “the fall of oil came to the point where she became a destabilizing factor for the world economy”, which leads to gold purchases.

The weakening of the dollar also had a positive impact on the gold market, as investors and analysts say the uncertainty in the prospects of a rate hike by the fed this year, writes the Financial Times.

According to the publication, analysts believe that investors will continue to seek financial refuge in precious metals as long as there remains uncertainty regarding global financial markets and the world economy.

Earlier, in the fall of 2015, analysts at BNP Paribas predskazala that the price of gold in the coming years will decline and by 2017 will reach $900 per ounce instead of $1100 per ounce in September 2015. Analysts linked the drop in oil prices.

Oil prices showed a sharp drop in early 2016. During today’s trading on the London stock exchange ICE Brent crude oil dropped to $32,8 per barrel. Last week one of the largest investment banks, Morgan Stanley has lowered its forecast for oil prices. According to the experts, contrary to previous forecasts of world oil prices in the second half of 2016 will not grow and may even fall further. If that was previously provided for the forecast increase in the average cost of a barrel of Brent in the October—December 2016 to $59, now experts are expecting no growth, and falling to $29.