Whether the gold price breaks the 2000 mark again depends above all on a possible turnaround in interest rates.
(Photo: dpa)
Frankfurt The Fed has hiked interest rates ten times since March last year. This is not a good environment for gold. Because the precious metal does not generate any current income. In times of high interest rates, investors who want to invest their money safely often opt for government bonds instead of gold. Gold then loses its attractiveness and value compared to bonds.
Investors hoping for rising gold prices are therefore looking forward to the US Federal Reserve (Fed), which meets again next week. As long as there are no clear signals that the currency watchdogs are abandoning their tight monetary policy, there will be no sustained upward trend for the precious metal.
The price of gold is currently reacting strongly to macroeconomic stimuli. After the regional banking crisis in the US, gold hit a near-all-time high in May, but shortly thereafter the price dropped below the $2,000 mark and fell to a three-month low of under $1,900 in late June.
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