The head of Target Investment, Noureddine Mohamed, said that fear of inflation risks is one of the reasons for the violent movement in the country Gold price hikewith the increase in flows to gold ETFs, netting $11.7 billion last March, and their gold holdings rising, and this was offset by central bank sales of gold, recording a net about 6 tons last month, as Uzbekistan sold about 22 tons, and Kazakhstan 5 tons, while Turkey buys gold. Wildly, it reached 25 tons last month.
Nour El-Din Muhammad added in an interview with “Al-Arabiya”, today, Monday, that all these requests in the market and violence in buying will lead to a further increase in prices, especially with the entry into the Muslim and Christian feast seasons and the increase in demand for gold.
He explained that breaking an ounce of the price of 2060 dollars qualifies it to higher levels at 2150 dollars and 2200 dollars.
The head of Target Investment said that he does not see that digital currencies are able to pull the rug out of gold and become a store of value instead, explaining that the largest digital currency, Bitcoin, has fallen to $ 38,000 from the price of $ 60,000 and is currently unable to break the $ 45,000 level up.
Noureddin Muhammad added that the real problem in front of gold and its reaching record levels exceeding $2,500 is the weakness of the purchasing power of individuals because income levels have become low and individuals are looking for basic needs first, while the investment part has become very little, which relieved pressure on gold.
The head of Target said that central banks are not eager to buy gold at the moment because they are taking strict policies, whether in America, Europe, the Middle East and India, which may reduce gold and not increase it, for example, a country like Kazakhstan, one of the producing countries, is currently buying and selling and has an active management of gold stocks to provide The greatest amount of money.
Regarding investing in gold, Noureddin Muhammad said that it is not likely that individuals invest in gold in the short term, and the individual must be a long-term investor over a period of 5 years or 10 years to obtain an appropriate return, and gold is currently a tool for hedging and not investing at the level Short because the market has many turmoil and does not know its future.
He added that it is not likely to buy gold ETF documents because their movements are very violent, and the amount of gold stock traded funds reached its highest level at the end of the first quarter of this year, since the third quarter of 2020, and as soon as the war stops, which is unexpected, all of that will be sold and thus will fall. Document prices.
He explained that it is better for individuals to buy gold bars rather than artifacts because of the cost of the industry.
Gold prices rose to a five-week high above the 1990 level per ounce.
This comes on the impact of the Russian-Ukrainian war, high inflation, and the risk of a recession in the United States against the backdrop of an accelerating interest rate hike by the Federal Reserve to curb inflation rates.
It is noteworthy that investment banks’ expectations of an economic recession in America by more than 30% over the next two years has also supported the demand for the yellow metal.