In the midst of a global financial market collapse, every ounce of gold is presently losing more than 70 USD. Right now, one ounce of gold is valued at 2,369 USD on the global spot market. This price has decreased by around 100 USD from this afternoon and by 73 USD from the session last week.
In unstable socioeconomic times, gold is a useful instrument for protection. When riskier assets like stocks and cryptocurrency fall in value, precious metals often see a gain in price. Gold has gained around 400 USD in value from the year’s commencement.
“Gold could benefit from rising global tensions and predictions that the US Federal Reserve (Fed) would drastically cut interest rates. When investors are nervous and interest rates are expected to drop, gold may theoretically reach a new high, according to Han Tan, an Exinity Group market analyst.
All markets are down today, though. “In order to offset their losses, investors are selling lucrative assets. This indicates a riotous attitude among investors in the stock market, according to Bullionvault’s Research Director, Adrian Ash.
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The US economy’s optimistic raw statistics, Japan’s interest rate hike strategy, and political unrest in the Middle East have all contributed to the current volatility in the world financial market. The Nikkei 225 index of Japanese stocks had a 13% decline on May 8, marking the worst decline since “Black Monday” in 1987. Circuit breakers were required for Korean equities when crucial figures dropped by more than 8%. The markets in Europe are likewise negative. And in just one day, the value of Bitcoin, the biggest virtual currency in the world, dropped by around 15%.
Due to a decrease in demand brought on by recession worries, the prices of other precious metals also fell sharply. Prices for silver dropped 5.7% to $27 per ounce. At $918, platinum declined 4.1%. Palladium dropped 4.5% and is now trading at 849 USD, the lowest since 2018.
