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Mining Sector Thriving as Gold Price Hits All-Time High

The never ending US-China trade war cause global growth to slow and therefore, central banks around the world to simplify monetary policy. Investors seek assets with stable growth. With this condition, gold has surged above $1,500 an ounce, reaching its highest price since six years. China's central bank expanded its gold reserves for an eight consecutive month in July, causing the metal to increase as much as 2.6% per ounce since 2013. Not only that, the price of silver is also predicted to rise above $17 for the first time since June 2018. According to Wayne Gordon, executive director for commodities & foreign assets at USB AG's wealth management unit, a further escalation of the trade fight triggers Gold's price, as a safe-haven commodity to go as high as $1,600. The flight of capital from securities to haven assets has on the other hand dampens the performance of stock markets around the world. Dow Jones reached its lowest point in a month, decreasing to 25,717 point. JCI also experienced a sudden crash in Tuesday (6/8), although both indices have bounced back per Friday (9/8).

However, as the stock market as