Gold price at record high: Investors flee to safe ports!

Gold price at record high: Investors flee to safe ports!

The gold price has reached a historical high and is currently up to $ 3,082 (approx. 2,858 euros) per trulner. This represents an increase of almost two percent within this week. In the year, the price increase is even significant with around 42 percent, which reflects the current market constitution. The main reason for this increase is the geopolitical tensions and economic uncertainties that persuade investors to consider gold as "safe haven". vienna.at reports that the continued conflict in Ukraine and the tense situation in the Middle East contribute. In addition, the announced punitive tariffs could exacerbate further trade conflicts from 25 percent to imported cars and auto parts by US President Donald Trump.

Market observers in London also warn that new tariffs not only intensify trade conflicts, but also could also boost inflation. In such an economic environment, gold is increasingly regarded as security against the loss of purchasing power. This perception is further reinforced by the monetary policy of the US Federal Reserve (FED), which does not exclude interest rates, because lower interest rates make gold more attractive compared to other forms of investment.

global economic turbulence and their effects

The gold price has not only increased in the USA; A similar trend is also evident on the international market. According to Stock World there are several factors that lead to this increase. This includes the geopolitical conflicts, in particular the ongoing Israel Hamas conflict as well as the economic sanctions against Russia and Iran. These events have significantly increased the demand for gold as a safe port. Investors are looking for reliable forms of investment in times of crisis, which drives the gold price.

Another important influence is the relationship between the US dollar and gold. If the dollar fluctuations, an increase in the gold price can often be observed. The monetary policy of large central banks, such as the US Federal Reserve and the European Central Bank, also has a direct impact on gold prices. Interest rates affect the demand for gold - while low interest rates increase demand, less gold is bought when interest rates rising.

gold as a safe port in times of crisis

gold has proven to be a reliable refuge over the years. Historical events such as the subprime crisis 2008, the euro crisis in 2010 and recently the Covid 19 pandemic show that investors are increasingly investing in gold in times of economic uncertainties. The combination of geopolitical risks and economic challenges ensures that demand remains high and the gold offer, especially due to sanctions, is increasingly restricted. Goldmarket emphasizes that the geopolitical risks and uncertainties can occur at any time, which makes gold an indispensable asset.