Gold prices must reach 4000 dollars, as the deficit may overwhelm the Iran war. Iran

In fact, gold has already decreased by 2 % a week since Israel began its air strikes on Iran. Meanwhile, tensions are leaking, as reported on Saturday B-2 Bombers It goes to the Pacific Ocean. This is that President Donald Trump weighs his involvement in the conflict, and perhaps with the bombers that fall the huge “cellar” cotton “on Iranian nuclear sites, hidden.

On Friday note, Bofa analysts said they expect gold prices to reach $ 4,000 an ounce next year, which represents a 18 % jump from the current levels.

They wrote: “Although the war between Israel and Iran can always escalate, conflicts are not usually a driver of upward prices.” “In this way, the American budget negotiation path will be very important, and if the financial shortage does not decrease, the implications of the volatility of the market may end in addition to attracting more buyers.”

The Israeli conflict raised Iran attention to the Trump bill for spending and spending on its way through Congress. While the publications of the House of Representatives and the Senate have major differences that must be reconciled before they became a law, it is still expected that the impact of the draft financial law of the project trillion dollars will add to the United States in the coming years.

This raised concerns about the sustainability of US debt and global demand for the flooding of treasury bonds that will be issued to finance all red ink. In the midst of Trump’s trade war, the US dollar – which is traditionally seen as a refuge – is also offered, as it fell against other higher currencies and provides more gold to gold.

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Central banks around the world have Discuss 48 billion dollars in the cabinet Since late March alone. At the same time, central banks continue to buy gold, and continue the direction that started years ago.

accident Survey from the World Gold Council I found that geopolitical instability and Possible commercial disputes They are the main reasons for the presence of central banks in emerging economies The shift towards gold At a rate is much faster than those in advanced economies.

Bofa estimated that the golden property of central banks is now just less than 18 % of public debt in the United States, up from 13 % a decade ago.

Analysts warned: “This number should be a warning to American policy makers. The constant concern of trade and American financial deficit may convert more central bank purchases away from the American treasury to gold.”

Meanwhile, the market still does not seem excessive gold. Bofa estimated that investors have allocated only 3.5 % of their gold governor.

Regardless of how Congress has ended to rewrite the budget bill, analysts said the deficit will remain high.

“Therefore, the market concerns about financial sustainability are unlikely to fade, regardless of the result of the Senate negotiations,” Bofa predicted. “The fluctuations of prices and the weakest of the US dollar should remain in support of gold, especially if the US Treasury or Federal Reserve was eventually forced to intervene and support markets.”