Friday marked a new milestone in gold's steep ascent this year. Continues to put pressure on retailers
At $2,700/oz, gold is now more expensive than ever before.The universal unit of measurement for the weight of gold and silver is the ounce. There are 31.1 grams in one ounce. Over 29,000 kroner is what it comes to. Friday morning saw a price of above $2,714 per ounce, reaching its peak. That's an all-new one.
There has been a more than 30% increase in the price of gold since the new year.
Unknown stock favorite of the fund managers: - Quite inexpensive Investors seek refuge in gold during times of uncertainty because of its reputation as a safe haven.
U.S. elections, which are looking to be extremely close, are adding to the list of worries in the region. Nitesh Shah, a commodities analyst at Wisdomtree, told Reuters that this causes a great deal of uncertainty, and that in times like this, people tend to flock to gold.
Conflicts in Israel, Gaza, and Lebanon persist in the Middle East. On Thursday, Hamas leader Yahya Sinwar was assassinated. Analysts frequently cite interest rates as a factor influencing the price of gold, alongside geopolitical and financial instability.
While interest rates are on the rise, gold prices tend to decline, and vice versa when rates are falling. Interest rates have been decreased by several major central banks, including the US Federal Reserve, following years of hikes. There will likely be additional interest rate reduction in 2025 and this year as well.
Good news for China?
With an annual output of roughly 330 metric tons of gold, China has not only regained but further cemented its position as the world’s leading producer of the precious metal. Not only is this behemoth involved in gold production, but it is also the biggest consumer, and its cultural and economic interest in the metal is unparalleled. China isn't the only country with a robust mining sector; Russia and Australia are close behind with annual production of about 320 metric tons each. These nations are major actors in the international gold market because of their large, frequently unrealized deposits.
But any discussion of gold mining must include South Africa, which was once the top producer in the world. South Africa's mining history still affects global gold dynamics, even if the country has fallen in the rankings owing to high production costs instead of a lack of deposits.
On the other side bad for us consumers, especially with Christmas right around the corner.