2024-08-20 19:26:32
The price of gold exceeded $2,550 per troy ounce on Tuesday afternoon, August 20, for the first time in history, according to data from the COMEX stock exchange.
Its price was boosted by the publication of data showing the weak momentum of the new home construction sector in the United States in July, a new negative signal for the economy of this country.
According to Bloomberg, the precious metal has risen by more than 20% this year. The increase in demand is due to the rise in geopolitical risks and uncertainty ahead of the US presidential elections in November, with central banks and Asian consumers being enthusiastic buyers, the agency notes.
This metal, considered the safe haven asset par excellence in times of uncertainty, both due to its limited availability and its constant demand, according to experts, had already reached new highs last July, when it reached almost $2,484.
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«Gold thrives on uncertainty… [y] “Uncertainty is at its highest,” said Sabrin Chowdhury, head of commodity research at BMI.
Gold is also still in “demand as a safe haven” in a tense geopolitical environment, says Commerzbank analyst Carsten Fritsch.
The Fed Committee announced last June that, although it will keep interest rates in their current range for the time being because economic activity continues to grow at a “good pace”, by the end of the year they will be lowered to around 0.25%.
Another factor driving bullion prices is the increasing chances of the US Federal Reserve cutting rates in September. Once the Fed starts cutting rates, probably next month, gold could reach $2,700 an ounce, experts say.
In the Middle East, the international community is stepping up diplomatic efforts to achieve a truce in the Gaza Strip after ten months of war between Israel and the Islamist movement Hamas.
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