On the London futures market, the price of an ounce of gold reached $2,062.99 before decreasing slightly, its highest level in a year. This increase is due to a pause in the rise of interest rates, which reinforces gold’s attractiveness for investors.
However, stock markets, commodities, and bond prices have fallen, leading to an increase in long-term borrowing costs. Data on US inflation expected tomorrow could strengthen the argument for a new increase in Fed interest rates if inflation does not slow down. Last Thursday, gold reached its fourth highest reference price in London, settling at $3.75 an ounce below the almost record peak of $2,048.45 in mid-March, reached during the collapse of US regional bank SVB.
New All Time Highs! May 2023.
The price of gold reached an all-time high of 2085 US dollars per ounce on Thursday, following the Federal Reserve’s decision to raise key interest rates by 25 basis points and signal a potential pause in policy tightening. This price increase is likely to continue, according to analysts.
One analyst, speaking on the matter, suggested that the price of gold could reach 2090 US dollars per ounce in the near future. They also expressed optimism about the gold price trend for this year, predicting that it could break past 2100 US dollars. The end of interest rate hikes for the US dollar is seen by many as the start of a gold era. As a result, analysts are advising potential investors to keep a close eye on trends and wait for the price to dip before taking the plunge.
Navigating the Volatility of Gold Prices: Tips for Investors
However, investors should also be aware that the price of gold can be volatile, and it is important to conduct thorough research and due diligence before investing in any asset. Despite this, the overall outlook for gold remains positive, with many experts predicting that the price could continue to rise in the coming months. For investors willing to weather the occasional market fluctuations, gold could be an attractive addition to their portfolios.
Central Banks Turn to Gold: What Does This Mean for Investors?
Investing in gold can be an attractive option for many investors looking to diversify their portfolios. Gold has a reputation as a safe-haven asset that can help protect against inflation and economic uncertainty. For over a decade, interest in gold has continued to grow, raising the idea of a future international financial system based on this metal. However, demand for gold took a new turn last year, primarily thanks to central banks. In 2022, they made unprecedented purchases since 1950 (the start of data collection), now representing 33% of monthly demand with over 1,000 tonnes of gold.