Business News of Tuesday, 31 January 2017
The Minerals Commission is optimistic uncertainties among the investor communities in America and the United Kingdom in relation to President Donald Trump and Brexit respectively paints a good outlook for gold prices on the world market in the future.
Investors in developed countries such as America and Britain tend to push their funds into gold deposits anytime uncertainties are rife on major stock markets.
In recent times, a similar instance happened during Brexit when investors moved their funds into gold deposits, causing demand to go up, hence prices also increasing.
Speaking to Citi Business News on how Ghana may benefit from such uncertainties this year, the Chief Executive Officer of the Minerals Commission Dr. Toni Aubynn was of the view that the new American president’s policies against foreign businesses are enough to create uncertainties that may increase gold prices.
“America has a new president who is completely a non establishment person. He doesn’t come from the political establishment so people are not sure which direction [policies will turn],which is good. It is good because you can’t always be predicted but for gold it is even better because gold thrives well in situations of uncertainty not in the same country but in other countries,” he observed.
Dr. Aubynn stated that investors are very analytical and risk averse hence will always respond to speculation to secure their investment.
He explained that gold has been a safe investment for investors anytime situations on the stock market get volatile.
He maintained that with the level of anxiety surrounding the Trump administration, investors will always get edgy which may be good for gold since price of the commodity will go up once demand increases.
“When there are uncertainties in America gold benefits, when there uncertainties in Europe gold benefits, when there is Brexit [and] people are unsure, gold benefits. So we hope to take advantage of that. The issue of Brexit is not settled so that creates some uncertainty,” he stressed.
Outlining some positive predictions for the sector, Dr. Aubynn stated that the World Bank has also made some favorable predictions on this year’s good price.
“When it comes to gold prices, I am very careful because you need to have the insight to look deep into the crystal ball before you can make the prediction. However, the World Bank is looking at a positive gold price this year”.
President Trump President Trump has made some pronouncements targeting high taxes at foreign companies that operate in the US.
He has also threatened to impose levies on goods imported from Asia into America.
This announcements have caused the investor communities across the world to be edgy.