The gold price has been rising since early March and has set a record every day so far this week. On Friday afternoon, the price temporarily rose to 2,328.46 US dollars (converted to 2,145.65 euros) per troy ounce (about 31.1 grams).
The surprising thing is that the labor market figures in the US do not lead to the opposite development. Expectations of lower interest rates have been tempered and gold does not generate interest. “Support comes from chart-oriented market participants or trading systems, as well as from the tense situation in the Middle East,” said Alexander Zumpfe, precious metals trader at Heraeus.
Central banks have increased their gold reserves
The gold price is also supported by central bank purchases. Central banks continued to increase their holdings in February for the ninth month in a row. Banks from China are eager buyers, followed by India and Kazakhstan.
Zimbabwe’s central bank introduced a new currency on Friday in response to high inflation, pegging it mainly to gold, but also to other precious metals and foreign currencies. Zimbabwe Gold, ZiG for short, is the name of the new currency. The economy in the country, home to 17 million people, has been faltering for decades.
Source: Krone
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