Despite the war in Ukraine and concerns about the economy, the price of the precious metal has fallen by around ten percent since its high for the year.
(Photo: imago images/McPHOTO)
Dusseldorf Gold prices hold up amid sell-it-all sentiment in the market. The price for a troy ounce of the precious metal is around 1830 dollars on Thursday, and thus at the level of the previous day. Compared to the high for the year, however, the minus is around ten percent.
Activtrades analyst Ricardo Evangelista explains that the economic worries of the crisis currency gold would actually benefit, but the upside potential is limited by the strong dollar. The US currency has risen 9 percent against the euro since the start of the year and has also risen against all other major currencies. This makes gold investments more expensive for many investors.
In view of the high inflation rates worldwide, the dollar is seen as a protection for investors, even before gold, explains analyst Craig Erlam from online broker Oanda: “We have entered another phase of the inflation panic and until this is over the dollar will probably remain king, and that’s not good news for gold.”
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