3,000

Last Friday, the 3,000 US$ per ounce mark for gold was surpassed for the first time in history. Although profit taking subsequently pushed the gold price back below this mark, in retrospect these were buying opportunities, at least as things stand today.

The precious metal will likely stay in demand primarily due to its status as a ‘safe haven’. In the past few days, we saw fewer news items on the issue of US import tariffs – likely the calm before the potential storm, as the US President reiterated that tariffs ‘at a significant level’ would be imposed from 2 April.

US stock markets and Fed meeting: tailwind for gold

The package approved by the German parliament on Tuesday for investments in infrastructure and defence, and possibly additional projects at the European level, probably also brought up the issue of ‘national debt’ again in the minds of some investors, giving gold a bit of a tailwind. The renewed setback across US stock markets on Tuesday provided a boost to the precious metal, as did yesterday’s Fed meeting. The Fed continues to expect an average of two interest rate cuts by the end of the year. Many market players had anticipated only one or even no interest rate cuts due to the risk of inflation – also as a result of tariffs. US Treasury bond yields dropped moderately following the Fed meeting, which in turn also supported gold prices.

Gold above 3,000 US$ per ounce mark since Tuesday

Last Thursday morning, the gold price traded at 2,937 US$ per ounce and climbed another 50 US$ per ounce intraday. On Friday, it leapt over the magical 3,000 mark for the first time. On Thursday, gold was trading slightly below this level, but from Tuesday morning it remained consistently above 3,000 US$ per ounce. After the Fed meeting, the previous weekly and new record high of around 3,057.50 was reached last night. This morning, gold started the European trading day at 3,046 US$ per ounce.

Xetra-Gold also rises significantly

The price of Xetra-Gold also rose noticeably, although it was slowed somewhat this week by the rise of the euro to a five-month high against the US dollar. From 86.75 € per gram last Thursday morning, it rose to 89.75 yesterday afternoon and is likely to start the trading day a little stronger this morning at 89.90 € per gram, if the 7:00 level remains current at the start of trading.

While profit-taking and corrections are to be expected at any time, many investors at the present moment seem to have fallen into a kind of ‘gold rush’. It remains to be seen how long that will last.

With spring just around the corner, I wish all readers a sunny weekend.