The Beirut explosion also shook world markets. Investors are buying gold, oil is becoming more expensive

According to the Bloomberg website, the price of gold rose to $ 2009.61 per troy ounce on Tuesday. Shortly before 9:00 pm Central European Time, it was close to $ 2005, an increase of about 1.4 percent compared to Monday.

The explosions in Beirut, Lebanon, which severely damaged a large part of the capital of the Middle East metropolis, contributed to the rise in the price of gold.

It has grown by almost a third since the beginning of the year. Gold is benefiting from interest rate cuts and other stimulus measures by which central banks are trying to help the economy overcome the negative effects of coronavirus. Low interest rates reduce the disadvantage of gold over interest-bearing investments such as bonds.

Demand for gold is also currently supported by the continuing deterioration in relations between the world’s two largest economies – the United States and China.

Analysts: The price of gold will continue to rise

Investors consider gold a safe haven in times of economic or political uncertainty. “People want security, and right now security is gold,” said Bob Haberkorn, an analyst at RJO Futures, according to Bloomberg.

In July, the price of gold rose by 11 percent. It thus recorded the sharpest monthly increase since 2012.

Experts agree that the price of gold will continue to rise and reach well below $ 2,000 per troy ounce. According to Golden Gate CZ analyst Marek Brávník, gold goes to $ 4,000 an ounce over a period of five to seven years.

The Czech Fund’s chief analyst Lukáš Kovanda also expects increased demand for gold in the future. “A further rise in the price of gold up to $ 2,500 an ounce cannot be ruled out. or now also the Middle East, “Kovanda comments.

The explosion affects not only gold

The silver price also rose to a multi-year high of around $ 26.20 an ounce in response to the Beirut explosion.

“Silver, like gold, is considered by investors worldwide to be a so-called safe haven for times of fundamental geopolitical, economic or other uncertainty. Gold and silver are appreciating by about thirty percent this year,” says Kovanda.

The price of oil is also rising in response to the Beirut explosion. Brent crude is now trading near $ 45 a barrel, virtually the highest since early March and the outbreak of the coronavirus crisis.

The cryptocurrency bitcoin also grows. It is helped by the weakening of the dollar, the printing of money by central banks and the threat of significant inflation. “Currently, the value of bitcoin is around $ 11,300, in terms of about 250 thousand crowns. Investors see gold and bitcoin as an alternative to traditional currencies, and in the coming crisis they are investing many times more in these commodities,” he says. Bitstock.com founder Martin Stránský.

It is still unclear what caused the explosion, which triggered tremors comparable to a 3.5 magnitude earthquake. Lebanese Prime Minister Hassan Diab said tons of ammonium nitrate had been exploded and stored in the port. US President Donald Trump said without further details that, according to US military experts, the cause was probably a bomb attack.