An upward jolt. Violent and sudden, as happened in the seventies, the real thing golden age for fans of the yellow metal. A real earthquake hit physical gold, jumped to around $2.100 already in the morning on the wave of purchases coming from China and even more fromIndia after the central bank banned metal lending operations, with the aim of blocking speculation.
In the meantime, however, purchases of physical gold have extended to Russia and South Africa but also to Switzerland. But here, the agency notes Reuters, the most substantial gains concerned Lindt, the chocolate capital which this year, the parent company informs, will be able to count on growth in revenue and profits in the order of 8-10%.
Gold rush: what are the reasons?
It is not as easy to understand, at least at first glance, the reason for the Gold rush by the operators. In the past, the push to purchase had two reasons: one linked to geopolitics, the other to the threat of inflation. Of course, the security aspect keeps its appeal alive, but the same cannot be said about profitability in free fall when money market and bond yields fall. But this is precisely what justifies the revival of interest in the noble metal. They. Already up about $50 over the past week, it is driven by disappointing data on manufacturing production and construction expense in the United States, as well as a reduction in price pressures.
Traditionally considered a safe way to preserve heritage, the metal suffers when i interest rates are raised, favoring an increase in returns on competing assets (such as bonds) and strengthening the dollar: thus gold becomes more expensive for buyers with other currencies.
Gold rally: how long will it last?
In this context of waiting, the news came from commodities, with the gold he chose today to make new all-time highs rising to $2.100 an ounce, if we exclude the night of December 4, 2023, when it reached 2.200. And this time? Much, indeed everything, is linked toattitude of the Federal Reserve. If President Jerome Powell makes it clear in the Congressional hearings that a drop in rates is now imminent, a new wave of purchases of gold cannot be ruled out. In short, the decline in rates favors an increase in gold. And the same goes for Bitcoin.
