The price of gold continues to rise

The price of gold is still trending upward. Yesterday, it exceeded, once again, its highest record, recording $2,342 per ounce. This continuous rise is due to a group of factors that have not yet changed. The lack of military and political stability, internationally, still exists with the continuation of the Russian-Ukrainian war, the intensification of the Israeli war on Gaza, in addition to the rising possibility of all-out war in the region, especially after the Israeli attack on the Iranian embassy in Damascus. All of this contributes to increasing private investment in gold, with the aim of preserving the value, and for fear of any military attacks that may reflect on the value of currencies. All of this comes with the general trend of the major central banks in the world, to increase their gold reserves. In March, the size of the Chinese Central Bank’s gold reserves increased for the seventeenth month in a row and now it owns about 72.74 million ounces of gold. The same path was followed by the central banks in Türkiye, India, Poland and Qatar. The rise of rhetoric talking about creating common currencies backed by gold, especially among the BRICS countries, has had a positive impact on the price of gold.

It is noteworthy that there are countries that have already created currencies backed by gold, such as Zimbabwe, which three days ago announced the entry of a new currency into the market backed by gold, in order to confront the high inflation rates it is suffering from. All of this coincides with the continuation of the global inflation wave that began about two years ago and has not subsided yet, as gold is a metal that maintains its value in the long term, so individuals and investors tend to replace part of their cash assets with gold. (An-Nahar)