The price of gold has risen above $2,000 again.

Last Updated: 22. November 2023By

Last October, the gold price clearly surpassed the hotly contested mark of $2,000, but it could not hold it. Now, the precious metal has once again risen in the morning trading session above the round mark – whether gold can establish itself this time above it depends on various factors. The signs for this could not be worse.

Why gold is in demand right now The Hamas attack on Israel and the current war in the Gaza Strip have strongly supported the gold price. In times of crisis, the precious metal is always in demand as a safe haven, as is well known. But the wars, geopolitical tensions, and uncertainties are only an obvious reason for the current development.

In addition, the gold price has recently been influenced by high demand from international central banks, continued high inflation, economic concerns, and bond and foreign exchange markets. Overall, the outlook for the precious metal is currently looking rather positive.

The bond markets have calmed down, making a zero-interest investment in gold attractive again, and the dollar is no longer so strong. Although the still high inflation is in favor of the gold price, the prospect of stagnant or falling interest rates is also not bad news for the precious metal.

Will the gold price remain above the $2,000 mark? Many experts are optimistic about the gold price in the medium and long term and expect a breakout at the latest in 2024. But for the current year 2023, there is still uncertainty as to whether the precious metal will sustainably exceed the round mark of $2,000. The mix of market events, economic development, and global political crises is in any case a good breeding ground for gold.

Investors should always keep gold on their radar as an investment and understand it as a safeguard. Diversification is important here, as fluctuations in both directions are practically never excluded with the gold price. Gold should always be seen as a sensible addition to the portfolio despite all course opportunities and positive properties.