The sudden rise in the international markets of two precious metals – gold and silver – has caused concern. This is due to the fact that rising prices are most often associated with impending turbulence in the economy or even international security.
Gold prices have shown an overall upward trend in recent months, up about 29% since October. In addition, this is due to strong inflation data in the US and speculation around a possible interest rate cut by the Federal Reserve. However, today (April 12), gold prices have risen to unprecedented levels in both the domestic and international markets.
The Comex gold price soared to a record high of $2,412 an ounce, with spot gold hitting a new high of $2,395 an ounce in early trading. Silver is in the same situation: the price of 1 kg bar today soared to €893.63.
Chris Wood of Jefferies, perplexed by the recent rise in gold prices, tries to explain the possible reasons for this in his report “Greed and Fear”, reports CNBC-TV18. He believes the recent rise in gold prices is mainly due to strong demand from China, as well as a lack of significant investor enthusiasm for the yellow metal.
“Recent events show a clear lack of investor euphoria regarding gold, so the question remains what is driving the current rally? The most plausible explanation is demand from China. However, there is not enough concrete data to confirm it.” – he said without giving an explanation.
The usual correlation between gold prices and inflation appears to be falling short, Wood said. Despite the rise in global inflation, the rate of overall price growth has slowed. However, surprisingly, gold prices continue to rise, confounding experts like Wood.
PS Experts apparently are not aware of the situation in the Middle East?
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