Reason for the rise in price and cheapening of gold clarified - the expert explains


September 17, Fineko/abc.az. Cases of a sharp rise in price and instant cheapening of gold, which have recently been observed on world exchanges, surprise even experts. So, gold, which rose yesterday by almost $13, has today fallen by $7.

We asked expert economist Parviz Heydarov to clarify the reasons for the frequent rise and fall in the value of gold.

The expert, who expressed his opinion to the ABC.AZ website regarding this issue, noted that gold is an investment tool, the best and most convenient object for investors to save their free funds.

According to him, in general, there is a connection between gold, oil and the US dollar, which allows us to determine the real situation in the global economy.

“Thus, when there is a boom on exchanges, there is uncertainty among investors, we become witnesses that gold always rises in price when the US currency drops sharply against other leading currencies of the world. As for the latest changes and jumps in the price of gold, this is due to recent moments in the global economy, markets, exchanges, especially in selling prices for strategic raw materials. That is, this can include the relations between the USA and China, the processes in the oil market, and, as I have already said, the relevant policies pursued by central banks related to the value of the world's leading national currencies. Summing up, I’ll say that if any uncertainty arises, it is necessary to perceive calmly the sudden increase in gold in the structure of its reserves by leading shareholders, including countries with large economies."

Posted by Elmir Murad