On Tuesday, October 23, experts record the rising cost of gold. Investors prefer the yellow metal as a safe asset because of the growing uncertainty around Italy's state budget and Brexit-related issues.
The cost of the December gold futures on the New York stock exchange Comex increased by 0.29%, to $ 1,228.1 per troy ounce. The price of silver futures for December delivery fell by 0.05% to $ 14.58 per ounce.
According to experts, gold is supported by the uncertainty around the Italian state budget. The European Commission intends to discuss further issues during the evaluation of the draft budget of the country for 2019. Earlier, the ministry criticized the principles of the Italian budget, finding it strongly deviating from the norms of the European regulations. Recall that Italy also has the second largest public debt after Greece in relation to GDP in the amount of 131.8%. Currently, it has increased to a historic high and is 2.3 trillion euros, noted in the Central Bank of Italy.
Market participants choose gold, which is traditionally considered an asset "refuge". During the periods of political tension, the demand for it grows, and during a recession, on the contrary, the level of demand decreases, which leads to cheaper metal.
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