Due to the continuing uncertainty in the financial markets, gold prices are skyrocketing. Late Friday afternoon, a troy ounce (about 31.1 grams) of the precious metal traded at $1,965 (about €1,855) on the London Stock Exchange – its highest level since April 2022.
That was about 2.3 percent more than on Friday morning. The gold price has risen by more than $100 in the past week. Even calculated in euros, the price has increased significantly.
Markets are restless
Market uncertainty remains high after the turbulence in the financial markets over the past few days. Gold as a safe haven continues to benefit. The collapse of several regional US banks dominates events.
In a “historic move,” as JPMorgan calls it, the troubled First Republic Bank received billions in bailout from the largest US financial institutions. However, this did not lead to any real reassurance. The major Swiss bank Credit Suisse came under pressure again on the stock market on Friday despite a billion-dollar support package from the central bank.
“Further developments mainly depend on expectations regarding the future policy of the US Federal Reserve (Fed, nm),” said Barbara Lambrecht, precious metals expert at Commerzbank. The Fed will announce its decision on Wednesday.
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.