Dhe price of gold rose to its highest level since April on Friday in view of the continuing uncertainty on the financial markets. In the late afternoon, a troy ounce (around 31.1 grams) of the precious metal was trading at 1965 US dollars on the London Stock Exchange. That is around 2.3 percent more than in the morning. In the past week, the gold price has increased by more than 100 dollars. Even calculated in euros, the price increased significantly. Most recently, an ounce cost 1842 euros.
The uncertainty on the markets remains high after the financial market turbulence of the past few days. Gold as a safe haven continues to benefit. The crisis of the regional banks dominates the events. In a “historic step”, as JPMorgan calls it, the troubled First Republic Bank had received support worth billions from the largest American financial institutions. However, this did not lead to any real reassurance. The major Swiss bank Credit Suisse came under renewed pressure on the stock exchange on Friday despite a multi-billion dollar support package from the central bank.
“The further development depends above all on the expectations regarding the future policy of the US central bank,” commented Barbara Lambrecht, precious metals expert at Commerzbank. The US Federal Reserve will announce its decision on Wednesday. “If the situation on the market has calmed down by then and the Fed at the same time identify further need for action to combat inflation, gold is likely to give up some of its recent gains,” Lambrecht expects.