On the gold market, the price of gold rose this morning by almost 1.5 percent compared to Thursday’s closing price to more than 2,265 dollars per troy ounce (31.1 grams).
This continued the advance of the previous weeks. Last month, the gold price rose for the first time to more than $2,200 per troy ounce.
Interest
The gold price is rising due to a number of things. Importantly, demand is growing because investors believe that the US central bank, the Fed, will cut official interest rates in June.
Gold, unlike money in the bank, for example, does not yield a return. When interest rates are high, the amount you miss in interest by buying gold is a lot higher than when interest rates fall.
Furthermore, lower interest rates in the US will make the dollar cheaper compared to other currencies. And this makes it relatively cheaper for investors outside the US to buy gold. The gold price is in dollars.
Safe haven
In addition, the geopolitical unrest in the world means that investors want more gold. Gold is seen as a safe haven.
There is also more demand for gold from China, both from the Chinese central bank and from Chinese households.
