Gold Shines Again and Reaches its Highest Level in a Year!

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The gold market seems to be on the rise lately, and the price of the yellow metal has reached its highest level in over a year. The price of an ounce of gold is currently close to $2,040. This increase is related to the growing expectations of the end of the US Federal Reserve tightening cycle. Indeed, weak US economic data are reinforcing these expectations.

The rise in gold is also due to global geopolitical and economic tensions, which support its safe-haven status. The current situation is favorable for a positive trend in gold, but an initial correction could be possible before seeing a significant drop in prices. However, the long-term prospects for gold remain positive. The US economic situation is also a key factor for the evolution of the gold market. Markets anticipate a 25 basis point increase in May, which could reduce the attractiveness of gold.

Citigroup has noted that although levels of $2,075 to $2,100 remain a key obstacle, they are positive for a continuation of the rise in gold. In addition, global economic tensions and financial stress could also favor safe-haven assets such as gold.

Finally, the evolution of the US dollar exchange rate is also an important element for the future of gold.

Although the dollar has rebounded compared to its one-year low, it remains an asset to sell in case of an increase. If the current support of $2000 is broken, an increase in gold prices up to $2,150 can be expected in the short term. Gold continues to shine as a safe-haven asset and is currently on the rise due to several factors, including the US economic situation and global geopolitical and economic tensions. Although an initial correction is possible, the long-term prospects for gold remain positive.

Paper money regulated and controlled by central banks who have the power to print away any amount of currency at will and commercial banks who can create credit money by fractional reserve system is the greatest con ever. Jp Morgan once said, “Gold is the real money, everything else is just credit”. 92% money exists only as IOU’s. At least gold has some scarcity which gives it an exchangeable value. Paper money is just based on trust which is worse than anything else. Your own logic against gold can be used for paper money too.

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