2023-12-09 10:30:08
Qhen the fir trees sparkle, gold shines brightly. At the start of this month of festivities, the precious metal ignited on the markets and soared to the heights. Monday, December 4, the 31-gram ounce traded, during the first exchanges, at 2,135 dollars (1,986 euros), a historic level. Gold hits a record.
It thus pulverized its previous high reached in August 2020, at nearly $2,067 per ounce. In the midst of the Covid-19 crisis, while the seized up global economy was falling into lethargy, shivering investors were gripped by a sudden gold fever.
Rebelote in March 2022. The invasion of Ukraine by the Russian army led by Vladimir Putin lit the speculative fires of the markets. Everything was blazing, and the yellow metal was once again touching the peaks. After a period of respite and decline, gold regained momentum this spring and once again crossed the $2,000 per ounce mark in mid-April. But it is the date of December 4, 2023 that will remain engraved in the annals, for having recorded a new historic high.
Attractiveness of central banks
Gold had already emerged from relative torpor when the conflict between Israel and Hamas broke out in early October. Geopolitical tensions always favor purchases of this metal, inevitably described as a safe haven. But the spark of the outbreak can be found in the remarks made by Jerome Powell, president of the American Federal Reserve (Fed), on 1is December. Or rather, in the choice of words used by investors. They liked to hear that interest rates had “reaches a sufficiently restrictive level” and have, without delay, bet on a rate cut from March or May 2024 to restore a bit of energy to a softening economy. Immediately, the greenback lost color and its decline propelled gold to the firmament.
However, the head of the Fed warned that it was too early to talk about lowering rates, and that the possibility of raising them could not be avoided if inflation required it. Have some finally decrypted all the data? The price of gold has experienced a slight decline since December 4, but remains above the $2,000 line. It is supported, it is true, by the appeal it arouses among central banks.
Many countries, like China, wish to exchange currency for gold metal. The level of bullion rises higher and higher, and the safes are overflowing with gold. Individuals weigh their woolen stockings weighted with ingots and napoleons. For the holders of these precious values, it’s Christmas before its time…
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