Precious metals
Gold increases from record to record – even silver in high demand
The upward trend at the gold price continues, silver also increases. There are many reasons-from the Ukraine war to US interest rate development to dwindling trust in government bonds.
The gold price continues its record hunting in gold funds and the prospect of further falling interest at an increased pace thanks to strong inflows in gold funds. On Tuesday, the listing for a troy ounce (about 31.1 grams) rose to $ 3,791.10 and thus more than ever. Gold had already reached a record at the beginning of the week. Also expected in euros, Gold was more expensive than ever on Tuesday with 3,210.24 euros per ounce.
In general, precious metals are still very popular with investors. The price of silver has also increased significantly recently. He reached the highest level in 14 years at $ 44.34 per ounce on Tuesday. Since the beginning of the year, the value of silver has increased by more than 50 percent. Gold gained more than 40 percent of value during this time.
The expectation of further falling interest in the USA is considered an important price driver after the US Federal Reserve Fed reduced the key interest rate for the first time this year. The US Federal Reserve have promised two additional interest reductions by 0.25 percentage points each by the end of the year. Since precious metal does not remove any interest, a decline in interest rates for other forms of investment such as government bonds increases demand.
Analysts from Bankhaus Metzler also see gold purchases from central banks as an essential reason for the price increase. For some time now, some central banks have been trying to become more independent of the dollar and therefore buy the precious metal to increase their reserves. In addition, the Metzler experts also recognized a cause of stronger gold demand in long-term inflation. In particular, market observers report a stronger demand for gold funds (ETFs), which create physical gold in their stocks and whose papers are traded on the stock exchanges.
In addition, the gold price is supported by a price weakness of the dollar, which has tended to value value due to the prospect of falling interest rates in the United States in recent weeks. Because gold is mostly traded in dollars on the world market, a weakness of the US currency makes the precious metal cheaper, which increases demand and supports the gold price.
According to analysts, gold remains popular with investors as a safe investment port. Gold today attract capital that had previously flowed into German federal bonds or US state bonds phases, according to an analysis of the decabank.
In the meantime, the gold price has more than doubled in the past three years, with geopolitical risks such as the Russian attack war against Ukraine increasing the flight in the investment ports that are considered to be safe. In addition, there is the aggressive customs policy of the US government, which together with the attacks by US President Donald Trump against the Fed strengthen the concerns about the independence of the central bank.
dpa
Source: Stern
