The price of gold exceeds 4000 dollars for the first time

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The price of gold has risen over $ 4000 an ounce for the first time, crowning an amazing rise with investor concern about inflation and high debt levels that accumulate in the precious metal.

Gold prices have risen more than 50 percent this year to $ 4019 on Tuesday, and have now doubled in less than two years. the Historical gains Gold prices were driven by the purchase of central banks for alloys to diversify their resources away from the dollar, as well as investors who see gold as a way to hedge in the face of uncertainty.

The billionaire hedge fund, Ray Dalio, said on Tuesday gold It was a safer alternative to the dollar, describing it as an “excellent diversification tool” for the investment governor.

“When you have such a debt supply … it is natural that you go to an alternative store of wealth, and for this reason we go to the most difficult currencies,” Dalio said at a holding conference in Greenwich. “Gold is the most important of these elements.”

Other major landmarks in the price of gold came at a time of chaos or uncertainty: it exceeded the level of $ 1,000 during the financial crisis, and 2000 dollars during the Kofid -19 pandemic, while the threshold of $ 3000 was exceeded in March, before the customs tariffs imposed by Donald Trump on “Liberation Day”, which prompted financial markets to a state of chaos.

The continuous rise in recent weeks – gold has increased by 20 percent in less than two months, largely driven by the flows involved in the boxes circulating on the gold -backed stock exchange – surprised the market. The closure of the US government, which is now entering its second week, stimulated the height.

“It is really an exceptional moment,” said Ross Norman, a veteran alloys who founded Fastmarkkets and Metals Daily, adding that he was worried about “the equivalent nature of movement, without stopping breathtaking.”

The standard purchases carried out by the central banks, which were buying to diversify their property away from the US dollar, were a major engine to go in the long term. Central banks have bought about a thousand tons of gold annually over the past three years.

“We have seen how prices are not observed by central banks in the purchases,” said Michael Hai, head of the commodity research department at Societe General Bank. “There is nothing magic about the number 4000 dollars, as the road continues towards the north.”

The closure of the US government has increased uncertainty by stopping the publication of the data of the Futures Trading Committee for commodities that explain how speculative investors are placed in gold and other commodities.

“The height is” a way in which people express their concerns about government debt, and on the independence of the Federal Reserve, “said Helen Amous, a BMO.

On Tuesday, Goldman Sachs raised its target price to $ 4900 an ounce, from $ 4,300, noting the purchases of the central bank and the inventory of the traded investment funds.

Participated in the coverage William Sandlwand in Hong Kong