According to the Economic Times, the price of gold is expected to increase to $1,400 an ounce by the end of the year due to the tensions between the United States and North Korea as well as rising demand in the world’s biggest consumers. Bullion price could soar up to $1,360 within 3 months and lenders have predicted that gold will not drop below $1,200. Analysts also expect prices to increase to $1,400 in 6-9 months. On Monday, gold was traded at $1,281.86.
This year, gold prices have jumped 12 per cent due to the increasing nuclear conflict between the United States and North Korea which led to inflation in the U.S. decreasing the chances of increasing interest rates. A hedge fund billionaire named Ray Dalio suggests that investors place 5%-10% of their assets in gold.
In China, the demand for gold bars has grown by more than half in the 6 months of the year with gold consumption reaching to almost 10 per cent to 545.2 tons.