Gold is rapidly rising in price and approaching the $5,000 mark: reasons for the price increase
23 January 14:56
On January 23, gold reached another record high, while silver and platinum also continued to rise to peaks, driven by declining confidence in US assets due to geopolitical tensions and economic uncertainty.
This was reported by "Komersant Ukrainian" with reference to a Bloomberg publication.
Today, the price of gold bars rose to a record high of over $4,967 and was on track for a weekly gain of nearly 8% thanks to the weakening dollar. Silver rose to a historic high of $99.34 per ounce. Platinum also rose to $2,650.9. Only palladium lost 0.6%, falling to $1,908.02.
Reasons for the rise in gold prices
“Faith in the US and its assets has been shaken, perhaps forever, and this is driving money into precious metals. So the word ‘breakaway’ is often used. I don’t think that’s an exaggeration,” said Kyle Rodda, senior market analyst at Capital.
Yuxuan Tang, head of macro strategy in Asia at JP Morgan Private Bank, noted that gold is undergoing a constant revaluation as “cracks appear in the rules-based order established after World War II.” In his opinion, investors are increasingly viewing gold as a reliable hedge against global risks.
In addition, analysts note that prices were also influenced by a key indicator of the US currency, which is experiencing its worst week in seven months. The dollar index fell 1% during the week against major world currencies, making precious metals cheaper for most buyers.
