Silver also on the upswing

Record run continues unabated: gold price rises and rises

(Bild: APA/dpa/Uli Deck)

The record run of the gold price continues unabated. On Thursday night, the value of the precious metal in London rose at times to 2304 US dollars (around 2137 euros) per troy ounce (around 31.1 grams). 

The prospect of interest rate cuts by the US Federal Reserve (Fed) this year continues to provide a tailwind. Fed Chairman Jerome Powell only confirmed on Wednesday that the US central bank is likely to start lowering key interest rates "sometime this year". Lower interest rates are generally positive for precious metals, which do not yield interest.

Silver also on the upswing
On Thursday morning, the price of gold held steady at around 2294 dollars. The price of silver is also continuing to rise, reaching its highest level for around three years at 27.33 dollars per troy ounce last night.

Soaring since the beginning of March
Gold has been soaring since the beginning of March and has set a price record every day so far this week. The price of gold is receiving additional support from geopolitical risks, for example in the Middle East and Ukraine.

As the latest data from the industry association World Gold Council shows, central banks also continued to increase their gold holdings in February - for the ninth month in a row. China dominated the purchases, but India and Kazakhstan were also eager buyers.

However, even some market observers are baffled by gold's rally, as real US interest rates remain high, which is normally detrimental to gold.