Logo of Phnom Penh Post newspaper Phnom Penh Post - Gold continues to rise as alarm strikes economies of US and EU

Gold continues to rise as alarm strikes economies of US and EU

Content image - Phnom Penh Post
Long Samnang, business manager at Golden FX Link.

Gold continues to rise as alarm strikes economies of US and EU

The price of gold reached the highest in history in the third quarter of this year – breaking the previous record in September 2011 of $1,921 per ounce, or $2,314 per tael in Cambodia’s gold market – rising to $2,074 per ounce.

Although global gold demand fell 11 per cent in the second quarter, the price of gold still continues its bullish momentum as the US has been hit massively by the outbreak of Covid-19, severely impacting its economy.

The US Federal Reserve’s annual economic symposium in Jackson Hole ended last week without any effective resolutions from monetary authorities around the world on planning financial stability policies and minimising the downturn in the financial system.

Meanwhile, the European Central Bank released a report on the current situation, one which could easily lead to a serious economic crisis.

Similarly, the US indicated that its financial markets remain in a slump.

However, it has the expectation that the long-term implementation of low interest rate policies could offset negative effects, while the plan to have inflation at two per cent to maintain economic stability will be temporarily set aside.

The price of the US dollar will fluctuate in line with the release of key US economic news this Friday, including on average hourly earnings, non-farm employment changes and the unemployment rate.

Therefore, based on technical and fundamental analysis, the price of gold could increase from the $1,972 currently to $2,030 per ounce in early September, exposing a good opportunity to invest in gold.

MOST VIEWED

  • ‘Education’ a priority traffic-law penalty

    A top National Police official on June 21 neither rejected nor confirmed the authenticity of a leaked audio message, which has gone viral on social media, on a waiver of fines for a number of road traffic-related offences. General Him Yan, deputy National Police chief in

  • Volunteer scheme to foster ‘virtuous’ humanitarian spirit

    A senior education official said volunteer work contributes to solidarity and promotes a virtuous humanitarian spirit among the youth and communities. Serei Chumneas, undersecretary of state at the Ministry of Education, Youth and Sport, made the comment during the opening of a training programme called “

  • Chinese firms unveil preliminary results on metro, monorail for capital

    Minister of Public Works and Transport Sun Chanthol and representatives from China Road and Bridge Corp (CRBC) and its parent company, the state-owned China Communications Construction Co Ltd (CCCC), met on June 24 for talks on results of the firms’ preliminary study on a potential metro

  • ACLEDA, WU to enable global money transfers

    Cambodia's largest commercial bank by total assets ACLEDA Bank Plc and global money transfer firm Western Union (WU) have partnered to offer customers cross-border money transfers to 200 countries via “ACLEDA mobile” app. In Channy, president and group managing director of ACLEDA, said the June 22 agreement

  • Aeon, Micromax partner again for third mall

    AEON Mall (Cambodia) Co Ltd and a locally-owned Micromax Co Ltd have entered into a partnership agreement to develop fibre optic infrastructure for $200 million Aeon Mall 3, which is expected to be opened in 2023. The agreement was signed on June 20 between Masayuki Tsuboya, managing director of

  • Walmart plans to diversify stock of Cambodia goods

    Walmart Inc, the world’s biggest retailer, on June 22 reiterated recent plans to scale up and greatly diversify its purchases of Cambodian products, according to the labour ministry. This came during a virtual working meeting between Minister of Labour and Vocational Training Ith Samheng and