GOLD: The sleeping giant has awakened

Gold is currently receiving support from many sources, so the price has climbed to a multi-year high. On Tuesday this week, the note peaked at $ 1,439 a troy ounce. This is the highest level since May 2013! In euros, even the highest level since January 2013 has been reached. A troy ounce on Tuesday cost up to 1,261 euros.

There is currently no question of a ‘flight to the gold’, otherwise risk papers such as shares would have to be under increased pressure. But recent stock market records, such as an all-time high for the S & P 500 and an annual high for the DAX last week, are a different story.

Many investors are concerned about how the conflict between the US and Iran is developing. For many investors, the main focus is currently on the prospect of interest rate cuts by the US Federal Reserve. This helps both gold and stocks. In the case of the precious metal, the reason for this is the interest disadvantage. Unlike many other investments, gold does not pay interest. However, this disadvantage diminishes with falling interest rates, pushing the gold price higher. Falling interest rates can also put the dollar under pressure, which in turn makes dollar-traded gold more attractive outside the dollar area.

As early as the beginning of the year, hardly any analyst had expected the price of gold to enter such spheres by the middle of the year. With one exception: Jeffrey Currie of Goldman Sachs. The analyst predicted a massive rise in the gold price this year in January. Not only will gold recoup all of last year’s losses, it will rise to $ 1,425, Currie predicted. In order for the price of gold to rise, there must be concern in the industrialized countries and prosperity in emerging markets, the resource expert explained his prognosis at the time. Because in the industrialized countries gold is used for hedging, and in the emerging countries for jewelery production. In the past year, it had lacked both the necessary care and the necessary wealth. With geopolitical risks and the push for the emerging markets due to the cheaper dollar, this could change, said Currie.