February 5, 2023

Copy-paste | Gold loses gloss and admirers

Gold partially won back the losses of the previous day, but investors are gradually losing interest in precious metals as a protective asset. In its place comes Bitcoin.

Gold prices dived below 1,500 on Wednesdaydollars per ounce and tested a minimum of $ 1,479. Today, during the day, gold partially recovered losses, however, in the long term, analysts note a decrease in interest in a defensive asset amid a decrease in the likelihood of a recession in the US economy and progress in trade negotiations with China.

Gold is losing appeal

Beijing and Washington announced last weekemerging progress in the negotiations, giving the markets hope for an end to the trade conflict, which has been going on for more than a year. Gold is considered a defensive asset and has traditionally been in demand in times of economic and geopolitical instability. However, it does not bring dividend income, therefore, as soon as investors understand that the danger has passed, they prefer to take their money and put it in risky, but more highly profitable assets.

According to the forecasts of analysts at ABN Amro, by the end of the year gold may drop in price to $ 1,400 per ounce, thereby losing a significant part of the positions won since the beginning of the year.

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