Precious metal is a market commodity and a substantial part of the global financial system
Global demand for precious metals in the past few years has increased, with a positive impact on prices, but gold and silver have been investment priorities for a long time.
Gold price dynamics are a significant economic indicator that allows to gauge investors’ risk appetites.
It is often observed that gold and stock indexes have inverse price movements: in an economically unstable situation, investors will prefer more conservative assets that are shielded from complete devaluation. Conversely, when economic growth is expected by optimistic investors, the prospect of increased profits in securities will push the yellow metal’s price downward.
Diversify your trading portfolio with precious metal allocations in times of financial turmoil.