Recently, news of the Russian President visiting the Chinese president became news highlighted by analysts, reflecting the rift in the global order into a map of geopolitical partners that allows trade to focus more on their geopolitical partners.
At market open Monday, gold rose to a high of $2,450 on news of the Iranian president's death. However, the rise did not continue and gold prices pulled back to reach $2407 as comments from Federal Reserve (The Fed) Deputy Chairman for Supervision Michael Barr suggested interest rates should remain at current levels for longer for inflation to return to target sustainably.
Although it fell to a low level of $2407, the price of gold rose again to reach $2436 and waved down again to $2423. The market seems to be consolidating, but several factors supporting gold include:
At market open Monday, gold rose to a high of $2,450 on news of the Iranian president's death. However, the rise did not continue and gold prices pulled back to reach $2407 as comments from Federal Reserve (The Fed) Deputy Chairman for Supervision Michael Barr suggested interest rates should remain at current levels for longer for inflation to return to target sustainably.
Although it fell to a low level of $2407, the price of gold rose again to reach $2436 and waved down again to $2423. The market seems to be consolidating, but several factors supporting gold include:
- Instability in the Middle East region due to the death of the Iranian president, Ebrahim Raisi, and several other important officials due to a plane crash.
- The Fed is likely to lower interest rates, this will also give a boost to gold
- Fractures in the world order encourage countries' central banks to buy gold for reserves. This can be seen from the ties between President Putin and the President of China during a recent visit to China, giving a picture of the cracks in the world order. BRICS members who no longer use USD choose gold as their reserve.
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