Search for security

Gold price exceeds 4000 US dollars for the first time

(Bild: AFP/JUSTIN SULLIVAN)

Investors' search for crisis-proof investment opportunities has pushed the price of gold above the USD 4000 (approx. EUR 3400) per troy ounce mark for the first time ever. 

Behind the rally, which has been ongoing for years, lies investors' search for security against economic and geopolitical risks as well as the expectation of further interest rate cuts by the US Federal Reserve. Larger purchases by central banks, renewed interest in gold-backed ETF exchange-traded funds, a weaker dollar and robust consumer demand have also fueled the metal's upward trend.

"We are currently seeing investors buying gold despite the high price, and this is further strengthening the movement," said UBS analyst Giovanni Staunovo. Some buyers are also simply afraid of missing out, according to the banks.

Even Bitcoin can't keep up
In the past seven trading days, the precious metal has risen in price by more than 200 dollars or almost six percent, reaching 4002 dollars on Wednesday night. The gain over the course of the year now amounts to around 51 percent. Gold is thus heading for its strongest rise in a year since 1979. The precious metal is also outperforming many other asset classes. Even Bitcoin, which like gold is benefiting from geopolitical crises and political uncertainty, cannot keep up.