Logo of Phnom Penh Post newspaper Phnom Penh Post - Bullish momentum in price of gold due to bearish US outlook

Bullish momentum in price of gold due to bearish US outlook

Content image - Phnom Penh Post
Golden FX Link Capital business manager Long Samnang

Bullish momentum in price of gold due to bearish US outlook

The price of gold has spiked over the past few weeks to break the previous record high set in 2011 of $1,921 per ounce, with the current price above $2,000 as of Wednesday.

Despite this unprecedented surge in gold, the US economy is being further hurt by the continuing impact of the global coronavirus crisis causing the value of its currency to depreciate, with the Republican party of President Donald Trump implementing economic stimulus strategies in the run-up to this year’s presidential election.

Globally, based on the fluctuation of currencies, precious metals, crude oil, stock indexes and other investment products, value opportunities in derivatives trading have been observed by both new and experienced investors to reap healthy returns during this difficult time.

As we see in the news every day, the Covid-19 pandemic has hit countries’ business activities, especially in the key revenue-generating sectors.

For instance, the US – the country worst hit by the Covid-19 outbreak – has shown a dramatic decline in economic performance based on latest indicators.

Recently, US second quarter GDP has dropped by 32.9 per cent on the previous period. Moreover, the production of crude oil has declined since June by two million to around 10 million barrels per day, compared to April when production was 12 million barrels.

In response, the US government has implemented a policy of economic stimulus through the purchasing of treasury and real estate bonds in order to rebound the economy.

And with the US presidential election set for November, both the Republican and Democrat parties are discussing​​​​ further economic stimulus plans through the above-mentioned strategy to the amount of $2.2 trillion.

while the value of the US dollar will continue to drop, gold will maintain bullish momentum within the range of $2,000 to $2,100 per ounce.

MOST VIEWED

  • Hun Sen: Stop Russia sanctions

    Prime Minister Hun Sen said sanctions against Russia as a result of its military offensive in Ukraine should be stopped as they have produced no tangible results, and predicted that a global food crisis would ensue in 2023 as a consequence. Speaking to an audience at

  • Chinese tourists 2.0 – Coming anytime soon?

    Regional tourism is grappling with the absence of the prolific travellers and big spenders – the Chinese tourists. Cambodia, which has welcomed over two million Chinese tourists before Covid-19, is reeling from the economic loss despite being the first to fully open last November ‘To put

  • PM reflects on shoe throwing: Free speech or act of violence?

    Prime Minister Hun Sen on May 17 questioned whether a man who threw a shoe at him while he was in the US was exercising freedom of expression or if it was an act of hostility. Hun Sen was referring to an incident last week when

  • Siem Reap’s Angkor Botanical Garden opens

    The Angkor Botanical Garden was officially opened on May 19 with free entry for both local and international visitors for the first six weeks. The garden was established on a nearly 15ha plot of land in Siem Reap. “After the first six weeks, Angkor Botanical Garden

  • Pub Street on the cards for Battambang

    The Battambang Provincial Authority has announced that it is considering establishing a Pub Street in the area around the heritage buildings in Battambang town in a bid to attract more tourists. Battambang provincial governor Sok Lou told The Post that the establishment of a Pub

  • Hun Sen: Don’t react to hostility

    Prime Minister Hun Sen urged tolerance and thanked members of the Cambodian diaspora for not reacting to the hostility on display towards him by others while he was in the US to attend the May 12-13 ASEAN-US Special Summit in Washington, DC. In an audio