Gold prices fall to their lowest level in almost a year
Gold is at an 11-month low of $1,685 an ounce.
The precious metal is coming under pressure, primarily due to the turnaround in interest rates.
Gold is still under pressure on the financial markets. On Thursday morning, the price of the precious metal fell to its lowest level in eleven months. At the low, a troy ounce (about 31.1 grams) was paid for in London at 1,685 US dollars. This is the lowest price since August 2021. Silver prices also continued to fall, but were still above their two-year low of $18.15 a troy ounce marked last week.
Several factors have weighed on precious metals in recent months. These include, on the one hand, the significantly strengthened dollar, which makes the precious metals traded in the US currency more expensive for many investors due to the exchange rate and weighs on demand. On the other hand, rising capital market interest rates mean that investors are less interested in gold and silver. In contrast to fixed-income securities, precious metals do not generate any regular income.
However, expert Craig Erlam from the trading house Oanda points out that the price of gold has recently fallen even when neither the US dollar nor market interest rates have risen. This is not a good sign for the precious metals, which are apparently very vulnerable to setbacks at the moment. Gold is simply not popular at the moment. Normally, the precious metal is considered a crisis protection and hedge against high inflation, which is currently the case in many places.
