The price of gold is breaking one all-time record after another, now hovering near $2,150 per ounce. It is thus at a level higher by almost 4.5% compared to the beginning of the year – a percentage that may not be impressive in general, but for gold it is characterized as large, especially since no new crisis has intervened that could justify the search for a “safe haven” by international investors.
So what is the reason for this price increase, which seems to be troubling many analysts? One reason could, undoubtedly, be the discounting of the first round of hikes in the key lending rate by the US Federal Central Bank (Fed), which is timed somewhere near June, based on the statements of its chairman, Jerome Powell . Such a move will likely lead to a weakening of the dollar against the other major currencies, which in turn moves capital into gold and other precious metals.
There are not a few, however, who are not convinced by this interpretation, even more so who do not take for granted the start of the interest rate reduction cycle in the near future. So, looking for other causes, they are also led to the side of China, as there are indications – such as the more than 50 dollars higher price of an ounce in Shanghai compared to London – that it is determined to strengthen its reserves not only in foreign currency, but also in gold. And this, in turn, is connected to the project of gradually creating a system of commercial and stock transactions that will not depend on the dollar, in which China and Russia are the protagonists.
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