Why is this important
The sharp rise in gold prices reflects a change in global investor sentiment and a decrease in confidence in traditional financial instruments. Such dynamics indicate expectations for the easing of monetary policy in the US and increased fears related to geopolitics, inflation, and economic instability. Simultaneously, the movement of prices for precious metals and oil indicates increased volatility in global commodity markets.
What happened
- The price of gold exceeded the mark of $4,400 per ounce for the first time.
- The price of the precious metal peaked at $4,420, after which the quotes adjusted slightly.
Numbers and facts
- Since the beginning of the year, gold has risen by more than 68%, marking the highest annual increase since 1979.
- In January, the metal traded at around $2,600 per ounce.
- The price of silver on Monday reached $69.44 per ounce, an increase of 138% since the beginning of the year.
- Platinum has updated its highest level in the last 17 years and surpassed gold in terms of growth rate.
- The price of Brent crude rose by 53 cents to $60.99 per barrel.
- American oil rose by 1.6% to $57.40 per barrel.
- According to analysts’ consensus forecast, the Fed may reduce interest rates two more times in 2026.
Context
- The rise in gold prices indicates an increase in demand for protective assets amid expectations of lower interest rates and weakening of the US dollar.
- Investors redistribute capital from bonds and other interest-bearing instruments into precious metals, striving to maintain profitability and reduce risks.
- The parallel rise in silver, platinum, and oil prices indicates that changes are affecting a wider segment of commodity markets rather than a single asset.
