• March 6, 2023

Gold price goes steeply upwards

Gold price goes steeply upwards

The price of the precious metal gold currently knows only one direction: steeply upwards. Gold is thus more expensive than it has been for months. And an end of the high flight is not foreseeable for the time being.

The European Central Bank (ECB) will most likely decide tomorrow, Thursday, to buy government bonds on a large scale. Thus the central bankers hope on the one hand for an urgently necessary stimulation of the economy in the euro area and on the other hand for the averting of the threatening deflation.

If the decision should fall in such a way, then the ECB releases thereby a new true money flood. This gives the gold price a real push upwards, because many investors are now fleeing into real values shortly before the ECB decision. One troy ounce of gold therefore currently costs (21.01.2015, 1 pm) 1.298.40 euros. At the beginning of January, the price was still 1.183 euro per fine ounce gold.

Gold price goes steeply upwards

Gold bar | © marog-pixcells – Fotolia.com

It is to be assumed that the price will continue to develop upward, because if the value of the means of payment decays, then real values, like precious metals or real estates, have highest economic activity.

Many experts had expected gold prices to continue to crumble in 2015. This is why some institutional investors and private individuals may have been caught on the wrong foot. By their now fast added purchase interest the bull market might be fanned still further.

Who is not yet invested in gold, should do this either immediately still, if one is then at present liquid and this money guaranteed in the near future not needed. Or wait for tomorrow and the decision of the ECB and the reaction of the market to it. Both options are speculative, with a further increase in the gold price being the more likely at present.