The price of gold continues to rise, building on the recovery from recent weeks. Around 9:45 AM CEST, the metal for immediate delivery was trading at approximately $4,409 per troy ounce, representing a daily increase of 0.7 percent. Compared to this year’s low, gold is more expensive by over 11 percent, but it still has a significant gap to the record values from the beginning of the year.
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Gold is gradually recovering from its June low
The price of gold fell to this year’s low of around $3,943 per troy ounce in June. Since then, the precious metal has been gradually recovering and investors are once again watching whether the upward trend can be sustained in the coming weeks.
Despite the current strengthening, however, gold is still trading more than 20 percent cheaper than at the end of January. It was at the beginning of this year that its price climbed to a record level just below the $5,600 per ounce mark. In less than two years, the value of gold approximately tripled, representing exceptionally rapid growth within this asset class.
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The price is supported by geopolitical and economic factors
Behind the significant rise in the price of gold in recent years stands a combination of several factors. These include armed conflicts, trade disputes between major economies, falling interest rates, high government debt, and continued gold purchases by central banks.
Some experts expect that the price of the precious metal could continue to rise in the coming months, especially if heightened uncertainty in financial markets persists. The development of gold is also closely monitored by major financial institutions, which include, for example, Goldman Sachs. However, according to experts, a rapid return above the $5,000 per ounce mark is not very likely at this point, and further development will depend primarily on monetary policy, the geopolitical situation, and investor demand.
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Source: ČTK
