In a commentary for Prime news agency, Kirill Chernovol, Researcher at the Gaidar Institute's International Best Practices Analysis Department, assessed the potential impact of the US shutdown on global prices for gold. The cost of this precious metal has already surpassed the mark of $ 3,900 per troy ounce for the first time in history, and the expert believes the current situation may trigger further growth in prices for gold.
Kirill Chernovol notes that in times of uncertainty gold traditionally acts as a protective asset. "Gold in these conditions is a protective asset, a safe haven for investors, so if the shutdown drags on, the price for gold may rise to over $4,000 per ounce," he said.
At the same time, the expert noted that rapid growth was always followed by a recession. "Any increase in asset prices is sooner or later followed by adjustment, that is, a decrease in price, and this is true for gold, as well. The end of the crisis in the United States, the strengthening of the dollar as an international reserve currency and the settlement of other crises at the international level may be a signal for a price reduction," the expert explained.