The value of gold In the international market, it maintains an upward path as it is an asset refuge at a time when a drop in interest rates is expected, although it does so to a lesser extent than in 2022 when it reached historical price peaks.
That year, the world’s large central banks and many monetary entities in the region increased their holdings of the precious metal as a safeguard in the midst of the global inflation crisis, while the Central Bank of Uruguay (BCU) It practically kept its stocks unchanged (they went from $5,919,000 to $6,276,500 in December 2022).
During 2023, the conditions of the world economy and financial flows stabilized, but the gold It remained the preferred conservative refuge in every stretch of uncertainty.
In that context, the BCU minimally increased its holdings in gold. According to the Monetary Balance of the Central Bank, At the end of last year, monetary gold assets rose by one million dollars.
The rise in these assets occurred last November, when the BCU It went from having 6 to 7 million dollars in gold, a tiny figure compared to its total assets and with other central banks in the region such as Peru either Ecuador.
Interest in gold is growing in the international market
The price of gold rose on Monday, driven by a demand for refuge in the face of tensions in Middle Eastwhile markets increased bets that the United States Federal Reserve (Fed) will cut interest rates sooner than expected.
Risks remained high due to the continuation of the war between Israel and Hamasto which was added the threat of the Houthi militia to respond to the United States air strikes in Yemen.
He gold tends to perform well during economic turmoil, with reliability that can help offset the risk of more volatile assets in conditions such as geopolitical uncertainty.
“He spot gold is also rising as markets cling to hopes that the Fed will cut its benchmark rates as early as March,” said Han Tan of Exinity Group, to Reuters. “The possibility that the gold record new all-time highs should remain open as long as the Federal Reserve moves in line with market expectations,” he added.
The bullion reached an all-time high of $2,135.40 on December 4.
Traders rate the possibility of a Fed rate cut in March at 81%, according to the CME Fed Surveillance Tool. Higher rates increase the opportunity cost of investing in bullion, which does not earn interest.
Source: Ambito
