A good news from abroad for the Dominican economy, among the many bad ones that have resulted from the war in Ukraine: gold continues its 2022 bull run and yesterday hit highs never seen.
Gold advanced to a new intraday high of all time $2,078.8.
This means more foreign exchange for the country for its exports of the metal and could also represent a greater contribution to the treasury of the Barrick Goldwhich would occur at a time when rising fuel prices and inflationary pressures have forced the government to increase subsidies to vulnerable sectors.
The behavior of gold price shows that this metal continues to be the main refuge asset during global crises.
price hikes
the analyst Ole Hansen of the Saxo bank said:
“Gold remains a low volatility safe-haven asset. We are going to face a period of extremely high inflation in which central banks will struggle to defend themselves due to other constraints. And that will continue to attract investors to the gold market.”
With the last rise, gold manages to win about $269.75 the ounce so far in 2022, for an increase in relative terms of 14.91%.
Gold has risen because the threat of a global impact in prices fuels demand for the safe-haven asset as a hedge against stagflation, where an acceleration in inflation is combined with the stagnation of economic production.
Concerns about supply disruptions following the sanctions against Russia have also pushed up the price of basic products such as oil, wheat and nickel.
The Brent Crude is near its highest level since 2008 as the United States moves toward a ban on Russian oil imports, while Moscow has threatened to cut off natural gas supplies to Europe through the pipeline. North Stream 1 and with other retaliation.
