Gold prices hit a new historic high, surpassing $5200 per ounce
At its peak, February gold futures on the Comex exchange rose by 3.14%, to $5242.2 per ounce, according to trading data at 6:10 AM Minsk time.
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Gold reached a new record level amid a decline in the US dollar exchange rate. A cheaper dollar supports gold, as it becomes more affordable for foreign buyers using other currencies, which stimulates demand.
On Tuesday, the DXY dollar index, which reflects the dollar's ratio to a basket of six world currencies, fell by 1.55%, dropping to a low of 95.551. The indicator is at such levels for the first time in almost four years — since February 10, 2022.
On Monday, the price of gold broke the $5000 per ounce mark, and last night it hit $5100.
Last year, the price of gold increased by 64 percent, and by almost 17 percent since the beginning of this year.
According to experts, the main reason for the rise in gold is the increase in geopolitical tensions worldwide. In addition, everyone continues to await another interest rate cut in the US.
However, opinions on the prospects diverge. According to analysts, financial and geopolitical factors will continue to push gold prices up for some time. At the same time, the risk of a correction is growing in the market, so further investments in gold are now associated with a high probability of a pullback, according to Investing experts.