Gold – gold bars – illustration photo.
London/New York – Today, the price of gold rose to its highest level in almost a year, approaching the $2,000 mark (roughly CZK 45,000) per troy ounce (31.1 grams). . Gold is considered a safe haven in times of uncertainty, its price is now being pushed up by problems in the banking sector.
Around 19:30 CET, according to Bloomberg, the price of gold showed an increase of more than three percent and was in close proximity to 1979 dollars (almost 44,500 CZK) per troy ounce.
“The price of gold is rising due to concerns , that there could be more bad news from the banking sector over the weekend and hopes that the (U.S. central bank) Fed will hold off on raising interest rates next week,” New York-based independent metals trader Tai Wong said, according to Reuters.
Rising interest rates are usually negative for the price of gold, as it increases the yellow metal's disadvantage against interest-bearing investments such as bonds.
Financial markets have recently been under tension due to the collapse of US Silicon financial institutions Valley Bank (SVB) and Signature Bank, and I worry about the big Swiss bank Credit Suisse. “Gold is likely to shine in this chaos as investors take a more cautious stance,” FXTM analyst Lukman Otunuga said.