Global geopolitical events can have an impact on the demand for gold as a safe haven. Rising geopolitical tensions due to Israeli tanks approaching Rafah further increase the geopolitical risk that it appears there will not be a ceasefire as many countries hope for.
In yesterday market the price rose from a low of $2334 to a high of $2359. Apart from geopolitical events, gold is also the choice of central banks as a reserve asset. The BRIC countries have also abandoned the USD as a currency for international transactions, increasing demand for gold.
The only obstacle is the Fed's interest rates which are still high, this causes people to prefer high yields to buying gold.
On the other hand, the IMF also warned that many countries are evaluating their trading partners regarding economic and national security issues that could threaten international trade based solely on geopolitical boundaries. The sanctions imposed by the West on Russia and Iran are one example of a trigger for limited trade based on the country's geopolitics. This also causes investors to choose gold.
On the other hand, the FED is still holding high interest rates become another obstacle to rising gold prices. US targets 2% inflation for interest rate cuts. Today's CPI news release of inflation data may get a market response regarding the Fed's possible picture of its policy.
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In yesterday market the price rose from a low of $2334 to a high of $2359. Apart from geopolitical events, gold is also the choice of central banks as a reserve asset. The BRIC countries have also abandoned the USD as a currency for international transactions, increasing demand for gold.
The only obstacle is the Fed's interest rates which are still high, this causes people to prefer high yields to buying gold.
On the other hand, the IMF also warned that many countries are evaluating their trading partners regarding economic and national security issues that could threaten international trade based solely on geopolitical boundaries. The sanctions imposed by the West on Russia and Iran are one example of a trigger for limited trade based on the country's geopolitics. This also causes investors to choose gold.
On the other hand, the FED is still holding high interest rates become another obstacle to rising gold prices. US targets 2% inflation for interest rate cuts. Today's CPI news release of inflation data may get a market response regarding the Fed's possible picture of its policy.
View attachment 7058
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