The price of gold continues to grow, and today for the first time in recorded time it exceeded the threshold of $2,700 (almost CZK 63,000) per troy ounce (31.1 grams). Demand for the yellow metal is supported by uncertainty ahead of the US presidential election as well as tensions in the Middle East. According to analysts, the reduction of interest rates also contributes to the growth of the gold price.
Around 07:30 CET, according to Bloomberg data, the price of gold showed an increase of about 0.7 percent and hovered around $2,712 per ounce. Since the beginning of the year, it has gained over 30 percent.
According to OCBC analyst Christopher Wong, the price of gold could continue to rise due to uncertainty surrounding the outcome of the US presidential election and geopolitical developments.
Israel announced on Thursday that its soldiers had killed the leader of the Palestinian terrorist organization Hamas, Yahya Sinvar. The Lebanese militant movement Hezbollah then announced the transition to a new and intensified phase of clashes with Israel.
As expected, the European Central Bank (ECB) on Thursday proceeded to further cut interest rates, reducing its deposit rate by a quarter of a percentage point to 3.25 percent. In September, the US central bank (Fed) also started cutting interest rates. Lower interest rates are good for the price of gold because they reduce its disadvantage against income-producing investments such as bonds.
Source: www.tyden.cz
