Last week was rich in the information about various financial markets, which could exert downward pressure on gold prices. Strange as it may seem, the situation in the ore market was relatively calm. Eventually, the week closed in the green zone. Those gains mainly had to do with Friday's gold rally. International traders and investors reacted to the information about another global economic slowdown coupled with the trade war between the United States and China as well as the current situation in the Middle East, and started loading up on gold as a safe-haven asset, which eventually pushed the prices higher.
At the same time, the Fed's interest rate decision remained unnoticed by the gold market for some reason. Most probably, the interest rate cut was expected by the market and therefore didn't cause any considerable reaction in the market whatsoever. Still, the volatility increased because of some controversial statements that followed the decision. On the one hand, the Fed representatives were concerned about the global economic slowdown, but on the other hand, they kept reiteration the statement that the American economy remained stable.
However, the biggest wave of concerns and fears was related to the situation in the Middle East. The United States decided to deploy more troop in the Persian Gulf area while defending Saudi Arabia. This makes international experts nervous about the possibility of escalating the tensions in the region.
So, there are the factors that supported gold prices at the beginning of the past trading week. On Monday alone, the price gained 1%, which is a good gain for such an asset as gold. So, the price reached 1530 dollars per troy ounce, FortFS experts report.
