The price of gold is rising again. The direction is again near an all-time high. A possible economic downturn in the US could push the price up further.
The gold price continued to move towards record highs on Wednesday. In the morning, the price for a troy ounce (31.1 grams) on the London Stock Exchange climbed to 2028 dollars (1860 euros), the highest level in just over a year. The quotation is therefore approaching the record high that was reached in the summer of 2020 at $ 2075.
Compared to the previous day, gold prices rose only slightly in the middle of the week, by about $7 per troy ounce. As of Tuesday, unexpectedly weak US economic data had boosted demand for gold and the price had risen about $40 an ounce. For comparison: At the end of 2022, the price of gold was $1814.
An unexpectedly sharp drop in sentiment in the services sector had raised fears of a recession in the US. An economic downturn could put an end to rising interest rates in the US, making gold more attractive to investors.
In addition, the price of gold is supported by the price development on the foreign exchange market. The US dollar lost value due to the weak economic data. This makes gold traded in dollars cheaper on the world market, which increases demand.
Source: Krone
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.
