Gold reaches a record price of $2,762 per ounce

The price of gold, one of the assets considered a refuge in times of uncertainty, has marked
a new all-time high in yesterday’s session, after closing at 2,762 dollars per ounce, and during the year it revalued almost 33%.

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March relates the strong rise in gold to the situation in the Middle East, a factor that, in his opinion, offsets the rise in the profitability of sovereign bonds. Carsten Menke of Swiss private bank Julius Baer points out that gold’s notable rally seems a lot more driven by
market mood than by fundamental factors.

“The positioning of short-term speculative traders and trend followers in
The futures market recently reached one of the highest levels ever recorded. “While the risk of a short-term setback increases, we still see a strong long-term fundamental backdrop for gold,” he assures.

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Furthermore, Menke points out that Asian gold purchases remain weak, “as indicated by the
Chinese imports. India’s gold imports have also normalized, he adds.

“While this increases the risk of a near-term pullback (potentially up to 10% if history is any guide), we still see a solid fundamental backdrop for gold.”points out in the opinion of this expert, a further cooling of the US economy and the prospects of lower interest rates in the US could attract more investors to the market and the dollar will come under pressure due to the increase in fiscal deficits, explains Menke.

EFE