Gold price today August 5: strong reversal

5 Ogo

World gold prices unexpectedly reversed sharply, as Europe and the US continued to release poor economic data. Specifically, the European economic area announced the investor confidence index released monthly by Sentix GmbH, August at a decrease of 3.7 points, much lower than the increase of 4.5 points in July.

In the US, factory orders released monthly by the US Census Bureau, measuring the change in the value of new orders for goods purchased at US factories, decreased by 4.8% in June compared to the previous month. Although slightly higher than the forecast of a decrease of 4.9%, it decreased sharply compared to the increase of 8.3% in May.

Thus, both the US and the European region are showing weaknesses in economic development. Because new orders in the US are considered a forward-looking indicator of upcoming demand for manufactured goods. Falling orders indicate that the production and business activities of US enterprises will face difficulties in operation.

5 Ogo

Dagangan aktif

Experts say that Russia sending submarines to the Russian region has raised concerns about rising geopolitical tensions in the region. The risk of tariff policies affecting global economies is showing signs of weakening. If the US moves increase geopolitical tensions, the safe-haven asset of gold will increase even more, due to the need to shelter cash flows. It is predicted that if Russia and the US do not have a common voice on the situation in Ukraine, the world gold price may increase to the threshold of 3,500 USD/ounce.