Spot gold prices rose above the $ 4,000 per ounce level for the first time, with an increasing concern about the US economy and the continued closure of the government, which added a new momentum to the strong rise of the precious metal. Gold rose 0.4% to reach $ 4,001.11 an ounce on Wednesday, at a historic moment for the metal, which just traded below the $ 2,000 level, with the returns now exceeding the performance of shares during the present century. Gold has jumped by more than 50% this year amid world trade uncertainty, the independence of the Federal Reserve and the stability of financial conditions in the United States. At the same time, geopolitical tension increased the demand for safe Haven assets, while central banks still bought in high pace of gold. Also read: Why is gold the first safe haven … and what can stop its rise? A tool to hedge against shocks. The increase in gold prices gained extra momentum as investors were trying to hedge against possible shocks in the markets, following the government’s financing crisis in Washington. The beginning of the Federal Reserve Monetary Working Cycle was also a supporting factor for gold, which does not give interest. Investors responded by pouring their money into exchange -traded funds, as their largest monthly inflow in more than three years in September saw their biggest monthly inflow in more than three years. Also read: Why do investors flock to gold and bitcoin? Charu Chanana, a strategist at Saxo Capital Markets Pte, said: ‘Gold’s violation of the $ 4,000 level is not just about fear, but about the resources of assets,’ and adds: ‘With the stopping in the release of economic data and the approach of a cut in interest rates, it seems to be overwowered. Central banks laid the foundation for this wave. Bullish, but retail investors and index funds are now the next leg. “Gold reflects the global economic and political crises that usually coincide with periods of great economic and political tension. Chairman Jerome Powell, and his efforts to dismiss Governor Lisa Cook, in what is considered the clearest test so far from the independence of the US central bank. Cyclic peak will reach when concerns about the independence of the Federal Reserve are at their peak, “Macquarie Bank Ltd. Analysts wrote in a September 30 note.” But if the Fed, under political pressure, is the best. Achieving its best annual achievement since the 1970s, an era witnessed high inflation and the end of the dollar’s pen to gold, which led to a 15-fold increase in the precious metal. Monetary policy experts. He added that this trend is still in its early stages, and expects the acceptance of gold to increase as an essential element in rational investment behavior, and it is likely that prices will be at the middle of the middle drivers of the middle of Gold’s bullying wave of Gold. Foreign exchange reserves in 2022 after the war against Ukraine, which urged many central banks to diversify their reserves. What is the meaning and impact of this?
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