Gold prices report on October 8, 2018

The three most important factors: a strong dollar, rising interest rates and aggressive stock market policy still profoundly affect the price of gold.

Last week’s meeting of the Federal Reserve led to an increase of interest rates, the eighth since 2015. Financial market experts indicate a further rate hike in December 2018 that will result in the strengthening of the US dollar.

On Monday, October 1, the US President Donald Trump announced a new trade deal with Mexico and Canada. A trilateral agreement will be signed within two months. According to the American head of state, the new trade deal will signify the most important US event of all time.

On Monday, against the background of the dollar’s strengthening, an ounce of gold cost $1.189.

On Tuesday, October 2, the situation in Italy had an impact on the regulation of gold prices.

Relations between Rome and the European Union have been exacerbated due to the budget deficit increase. The EU leadership views the actions of the Italian government as an attempt to leave the European Union. President of the European Commission, Jean-Claude Juncker, announced that Italy’s actions could "mean the end of the euro":

"I would not wish that, after having really been able to cope with the Greek crisis, we'll end up in the same crisis in Italy."

The fall of the Italian stock indices had an adverse impact on the global market. The opposition considers the reintroduction of the national currency to protect Italy from the economic storm.

In the photo: Jean-Claude Juncker predicts an economic crisis to hit Italy.

The situation on the Italian financial market affected the price of gold: the price for an ounce of the precious metal increased up to $1.203.

On Wednesday, October 3, the Italian government had yielded to pressure from the European Union and announced a reduction in the planned budget deficit from 2.4% by 2019 to 2% in 2021.

In the photo: The economy of Italy ranks third in the European Union.

Robert Kaplan, President of the Federal Reserve Bank of Dallas, said that at least three more interest rate hikes are planned for 2018 and its first half.

World-renowned investor Jim Rogers expressed his opinion regarding the upcoming market downfall, describing it as the worst possible one in history. D. Rogers recommends refraining from selling gold, considering the precious metal a salvation at times of a crisis. Experts and analysts predict an increase in the price of gold in the short run.

On Wednesday, the price of gold was $1.197 per troy ounce.

On Thursday, October 4, Bloomberg reported that the dollar’s positions have been shattered. The heads of the leading states fail to recognize the hegemony of the American currency. On Thursday, however, the dollar slightly strengthened after the statement of the Federal Reserve Service Chairman Jerome Powell, who confirmed the Fed’s maintains a strict policy. Powell spoke about the significance of neutral interest rates since "we no longer need low interest rates."

The Fed’s remarks have strengthened the dollar. On Thursday, the price of gold was $1.197 per troy ounce.

On Friday, October 5, Il Giornale reports that Europe is on the verge of a crisis due to debts, loans, population aging and political disputes.

On Friday, an ounce of gold cost $1.202.

On Monday morning, October 8, the price of an ounce of gold was $1.197.

The World Gold Council reports that global gold reserves have increased by 113 tons. In September 2018, Russia, Turkey and Poland increased their gold reserves. The National Bank of Poland acquired 9 tons of gold this year’s July and August for the first time in 20 years.

Metals Focus analysts confirmed the growth of gold production within the past eight years. According to experts, a shortage of gold may occur by 2025, yet it can be averted with the means of modern technologies and the rising price of gold.

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