The price has been rising for the third day since the start of the week. In euros, the precious metal is trading at a higher price than ever before. There is a reason for the growing demand.
The price of gold has continued to rise significantly and has reached a record high in euros. At times, the precious metal was trading at 2,290 euros per troy ounce (about 31.1 grams) today, making it higher than ever before. The price has been rising for the third day since the start of the week, with speculation about falling interest rates fueling demand.
On the world market, the price of gold is usually quoted in US dollars. The price has so far only just missed the record mark during trading. On the London Stock Exchange, the troy ounce was temporarily traded at around 2,529 dollars. The price thus remained just below the record high of August 20, when gold was more expensive than ever at 2,531.75 dollars per ounce.
Interest rate expectations in the US in particular play an important role
The most important price driver for gold remains speculation on falling interest rates. Since gold itself does not pay interest, the prospect of falling interest rates increases demand for the precious metal. Market observers believe that interest rate expectations in the USA in particular play an important role. The first interest rate cut in the USA since the wave of inflation is expected next week.
It is still unclear how much the US Federal Reserve will cut rates on September 18. The monetary authorities could react to the recent decline in inflation and the economic slowdown with a small interest rate hike of 0.25 percentage points or with a larger hike of 0.50 points.
Source: Stern
