Photo: Nguyen Huy Kham / Reuters
Amid growing tensions in global markets and the associated risks to investors who seek safe-haven assets, should pay more attention to the currency than gold. The role of the “safe Harbor” suitable Japanese yen. To such conclusion experts of investment Bank Goldman Sachs, according to Bloomberg.
From a tactical point of view the cheaper yen, according to analysts, is more profitable valuing gold. For the year, gold rose in price by 11 percent, the yen’s rise against the dollar amounted to 1.6 percent. If the United States agreed to the weakening of the dollar, gold and yen can win, concluded analysts.
The need in finding a safe haven among investors have arisen against the background of rising tensions in global trade and related risks. A kind of a period of silence was caused by pending action of the Federal reserve system (the fed). It is expected that at the meeting at the end of the month the fed will cut rates by 25 basis points. Until that time, the market was left without signals in the interest rates.
Gold saw the potential for investment after the price jumped to the highest since 2013. In the precious metals saw an alternative to US government securities with low returns. And gold, and government bonds negative returns adjusted for inflation (minus 0.2 percent compared to minus 0.9), however, gold is more optimistic than some bonds. However, the storage of the precious metal costs.
Video, photo All from Russia.