Fear in the markets: gold exceeds 1500 USD for the first time since 2013

The prices of gold scaled up today maximum of six years, above those of $ 1,500 an ounce, as investors continued to seek shelter badets in the face of growing trade tensions between China and the United States.

Cash increased 2.25% to 1507 dollars an ounce before 14:00 in Argentina, the highest since April 2013.

The tariff war between the United States and China intensified last week when President Donald Trump threatened to impose more tariffs on imports from China. For its part, China has allowed the yuan to fall below 7 units per dollar, which has led Washington to officially designate Beijing as the currency manager.

"The escalating trade tensions is a backdrop key that supports the price of gold; The mbadive increase in debt with a negative performance is another important factor, "said Ross Strachan.badyst of Capital saving, to Reuters.

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Despite the decline, the Central Bank's monetary report recorded an increase in the financing of credit cards and promised loans, which is explained by the intensification of consumer incentives by the government, such as the Now 12 programs. and July 0 km, respectively.

In search of refuge

For Luis Palma Cané, international markets specialist, the cause why gold is gaining importance is a "fly to quality" resulting from low rates in India, New Zealand and Thailand, a move that accompanied the withdrawal previously made by the US Federal Reserve. In addition, he cited nervousness of investors due to geopolitical tensions, a scenario that was exacerbated by the US Trade Representative. and China

"India's rate dropped by 35 basis points, while it was supposed to be 25, and was 5.4%, later." New Zealand dropped 50 points, but it has also been estimated between 25 and 1%; Like the United States, these countries do not present major problems, but choose to be cautious, because the market there reads that it is recognized that the Deceleration of the world economy is a fact, they take precautions, "explained the expert.

In turn Palma Cané said that the "fly to quality" came from FridaySomething that intensifies on Monday with the devaluation of the yuan, but that Tuesday, despite the recovery of the markets, gold also led to a slight but finally rising gold.

"This behavior indicates that Clearly, gold has recovered what it had lost a few years ago, as a valuable haven, "said Cané Palma.

Although there is potential for correction in the short term, now many badysts consider the $ 1500 per ounce as a turning point, according to Strachan.

Signs of fear

Gold's behavior has also been observed in the other shelter badet par excellence, Treasury bonds. the United States. As more and more investors seek out riskier badets, their prices rise and the rate they pay decreases accordingly.

The US 10-year bond yields hit their lowest level since 2016. On Tuesday, European sovereign bond yields reached record lows. He played 1.64% shortly before 14 in Argentina.

An indicator prepared by CNN Money and based, among other factors, on the demand for housing badets, also marks the moment of uncertainty that is hitting the global market and is also affecting Argentina.

It is about Index of fear and greed (index of fear and greed) which fallen to Extreme fear (extreme fear) from the neutral level a week ago and after marking "greed" (greed) just a month ago. The index seeks to show what is the attitude of the market and its appetite for risk at any given time.

The bank Goldman Sachs said in a note sent to customers that no longer expects the conclusion of a trade agreement with China before the US presidential election of 2020. At the same time, Morgan Stanley warned that the tariff war could drive the global economy to a recession by the middle of next year.

Among the other precious metals, silver gained 1.9% to 16.76 dollars an ounce; while platinum added 0.5% to $ 851.79 an ounce; and palladium decreased 0.2% to $ 1,434.11.