The hunt for records in the gold market continues. On Monday evening, the price for one troy ounce (that is about 31.1 grams) of the precious metal rose to a record high of 2,353 dollars (about 2,170 euros). In the afternoon the price fell again.
Silver, often referred to as gold’s little brother, also continued to rise. With a maximum of 28 dollars, the round limit of 30 dollars is not far away.
The gold price had already risen from one record to another in the past week. Experts cite several reasons for the series, including high geopolitical risks in the world, especially in the Middle East.
Demand from central banks
In addition, there is high demand from the major central banks, especially the Chinese central bank. Given strong demand, major bank UBS has raised its gold forecast. She now expects 2,500 dollars (about 2,300 euros) per troy ounce by the end of the year.
In principle, the gold price also benefits from expectations that key interest rates will fall in many places. Unlike many other financial investments, the precious metal does not generate regular income such as interest or dividends. However, the weight of this argument has diminished recently as expectations of interest rate cuts in the world’s largest economy, the US, have diminished.
Due to the stable US economy and slow inflation, experts are now debating whether the Federal Reserve (Fed) will actually cut its interest rates in the near future. Fed Director Michelle Bowman recently even suggested the possibility of an additional interest rate increase if inflation does not fall further or accelerates again.
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.
