Geopolitical risks

Gold price reaches another record high

The price of gold reached a new record of USD 2353 per troy ounce on Monday night.

(Bild: APA/Robert Jäger)

The record hunt on the gold market continues. On Monday night, the price of one troy ounce (approximately 31.1 grams) of the precious metal rose to a record high of 2353 US dollars (around 2170 euros). However, the price fell again in the afternoon.

Silver, which is often referred to as gold's "little brother", also continued to rise. At up to 28 dollars, the round mark of 30 dollars is no longer far away.

Last week, the price of gold had already rushed from one record to the next. Experts cite a number of reasons for the run, including the high geopolitical risks in the world, particularly in the Middle East.

Demand from central banks
Added to this is the high demand from major central banks, primarily the Chinese central bank. In view of the brisk demand, the major bank UBS has raised its gold forecast. It now expects 2500 dollars (around 2300 euros) per troy ounce by the end of the year.

In principle, the gold price is also benefiting from the expectation of falling key interest rates in many places. This is because, unlike many other financial investments, the precious metal does not generate regular income such as interest or dividends. However, the weight of this argument has recently tended to diminish because expectations of interest rate cuts in the world's largest economy, the USA, are declining.

Due to the stable US economy and tough inflation, experts are now debating whether the Federal Reserve (Fed) will cut interest rates at all in the foreseeable future. Fed Director Michelle Bowman recently even raised the possibility of an additional interest rate hike if inflation does not fall further or accelerate again.