After rebounding from the January low, the price of gold not only recovered for a while, but later this week it reached a new temporary high of USD 2,009 per ounce. Subsequently, it recorded a slight decrease, which was probably the result of a slightly overbought market.* If the buying rally continues, the price could increase by .
The price of the king of precious metals has reached a very high level in recent weeks. If the short-term technical oscillators indicate that the growth is fast, fundamental factors in the form of geopolitical tension can further support the growth of the price of this expensive metal.
Graph: Evolution of the value of the futures contract for gold with an expiration date in December 2023 over the last 5 years. (Source: Investing.com)*
Long term in green ears
In the course of January, the price rebounded from the bottom as a result of the conflict on the Middle East, which was the main catalyst of uncertainty, prompting investors to take a safe bet in the form of investments in gold. From a long-term perspective, the development and fall of the escalation of the conflict will depend on the price of gold, as well as the American interest rates, which can be a significant factor not only for gold, but also for other metals. The general truth is that gold is a relatively conservative investment, but it should be a stable and permanent part of every investor’s portfolio. If we consider the five-year price performance of the king of precious metals, we can currently observe an appreciation of 55%*.
So invest in the central bank
Central banks increased their gold reserves last year and bought a record 1,078 tons of gold. As the price of the king of precious metals goes in the near future, it will rise to the ad factor, but for now, most of them indicate that it should remain in the green and potentially be able to break previous records.
Olivia Lacenov, chief analyst at Wonderinterest Trading Ltd.
* Past performance is not a guarantee of future consequences.
Olvia Lacenova
In the world of financial markets, she started a sales department, where she dealt with clients trading through CFD certificates. She was particularly fascinated by the world of shares and commodities, which she wanted to study in more detail. She spent a year and a half writing professional articles on this topic in the editorial office of Hospodské noviny. At the moment, he is engaged in an analytical activity, where he focuses on the main commodity markets and the development of precious metals, which in physical form is considered the best form of seizing property against uncertainty.
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