From 2h
ago
08.24 CET
Introduction:
Weak dollar drives gold over $5,500 an ounce
Good
morning and welcome to our rolling coverage of business, the financial markets
and the world economy.
The surge
in the gold price is showing no sign of abating, as bullion continues to soar.
Gold has
jumped over the $5,500 an ounce level this morning, just three days after
hitting $5,000 for the first time, taking its gains so far this year to almost
30% (!).
It
powered higher as investors continue to rush into safe haven assets, looking
for protection against geopolitical and economic uncertainty.
Precious
metals are also benefiting from the weaker dollar, which has lurched lower
after president Trump indicated this week he was comfortable with the
currency’s year‑to‑date softness. That only encouraged fears of monetary
debasement, boosting gold’s attractiveness.
As Chris
Beauchamp, Chief Market Analyst at IG, explains:
“That
sound you hear is that of 2026 gold targets being furiously revised higher, as
the price keeps climbing, and given renewed impetus by Trump’s comments on the
dollar. This will have fans of the debasement trade cheering in their seats, as
it reinforces their thesis.
Each time
precious seem at risk of running out of bullish momentum, something comes along
to rescue it. So long as international investors keep dumping the dollar, the
future for gold looks bright indeed.”
Concerns
around the independence of America’s central bank are also lifting gold.
Although
the US Federal Reserve resisted pressure from Trump and held interest rates
last night, it may cut rates once a new chair has been installed to replace
Jerome Powell later this year. That could weaken the dollar further, and lift
inflation – two conditions which are good for the gold price.
.jpg)
.jpg)
Sem comentários:
Enviar um comentário