The gold price attacked again 2000 USD per ounce

The gold price not only recovered well after bouncing back from the October low, but also reached a new five-month high of USD 2,009 per ounce earlier this week. It subsequently experienced a minor decline, which was likely the result of a slightly overbought market.* If the buying rally continues, the price could rise even higher.

The price of the king of precious metals has been pushed up into the overbought zone in recent weeks. Although short-term technical oscillators suggest that the upside is overdone, fundamental factors in the form of geopolitical tensions may continue to support the rise in the price of this precious metal.

Snímek obrazovky 2023-11-07 v 10.05.46

Chart: The evolution of the value of the gold Futures contract for delivery in December 2023 over the last 5 years. (Source: Investing.com)*

Long term in green numbers

During October, the price rebounded in the wake of the Middle East conflict, which was the main catalyst for the uncertainty that drove investors to the safe haven of gold investments. In the long term, the developments and possible escalation of the conflict will be important for the gold price, but also US interest rates, which can be a significant driver not only for gold but also for other precious metals. In general, however, gold is a relatively conservative investment but should be a stable and integral part of any investor's portfolio. Looking at the five-year price performance of the king of precious metals, we can currently observe an appreciation of 55 percent.*

 

Central banks also invest

Central banks have been increasing their gold reserves over the past year, buying a record 1,078 tonnes of gold. What direction the price of the king of precious metals takes in the near term will depend on a number of factors, but so far most of them point in the process that it should remain in the green and potentially be able to break previous records.

 

Olivia Lacenova, principal analyst at Wonderinterest Trading Ltd.

 

* Past performance is no guarantee of future results.

This text constitutes marketing communication. It is not any form of investment advice or investment research or an offer for any transactions in financial instrument. Its content does not take into consideration individual circumstances of the readers, their experience or financial situation. The past performance is not a guarantee or prediction of future results.

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