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Gold has never been more valuable. With a further upward leap, prices went up to 2,145.40 dollars per ounce in the session on Tuesday the 5th in New York, a new historic high for the US currency. The previous record lasted just three months: it was updated on December 4, 2023, at $2,135, but the bullion quickly retraced.
For a few weeks the race has regained its momentum, especially after the upward break of the threshold of 2 thousand dollars an ounce, which occurred in mid-February. And in recent days there has been a further acceleration in purchases, so strong that it has even surprised many experts: in five sessions the value of the metal has increased by more than 100 dollars an ounce.
The rally is partly attributed to geopolitical tensions, which drive the search for safe havens. But there are also technical and speculative factors at play: market signals that are encouraging funds inspired by “momentum”, which follow the trend and thus strengthen it.
At the Comex, where gold futures are traded, in February a wave of re-coverings, i.e. repurchases of “short” (bearish) positions, which had accumulated in parallel with the strengthening of the dollar and Treasury yields, was triggered. When US inflation cooled, speculators returned to hoping for an imminent drop in interest rates and hastened to reposition themselves.
The engine that moves gold prices most forcefully is almost always the expectation of a change in monetary policies, especially by the Federal Reserve. And today’s rally is no exception