According to analysts of a large American company, BlackRock, the refusal of raising interest rates by the US Federal Reserve System (FRS) could be a catalyst for the rise in gold prices.
Since August last year, the yellow metal is in an uptrend. Experts note that after a short-term consolidation last week, the price of gold began to rise again, wherein for 1 ounce of the precious metal was given $1,292.
According to the forecasts of the BlackRock company specialists, a positive the trend in gold prices is expected to be positive in the near future. The company believes that fears of a recession are exaggerated, although the situation in global markets will not be very positive. Under these conditions, the yellow metal will be supported for further growth.
BlackRock experts are confident that gold will be a good and reliable asset for any investment portfolio. "The yellow metal will have a positive effect on the entire investment portfolio and will balance the risks," experts say.
Last year, the cost of gold was under pressure from two factors that impede growth including the increase in the real interest rates in the United States and the strengthening of the American currency. Analysts believe that in case of a slowdown in the growth of interest rates, the pressure on the value of gold will decrease.
BlackRock believes that in the event of high volatility of the stock market and political instability, the precious metal will once again become the focus of investors' attention. The yellow metal is an excellent means of preserving capital in the long term, especially in case of increasing risks in the stock market, analysts sum up.
The material has been provided by InstaForex Company - www.instaforex.com