WASHINGTON — He oro broke a record again on Wednesday, given its category of safe haven value in times of crisis, given the increase in geopolitical risk coming from Middle East.
Also pushed by a weakness in the dollar and the yen, the price of an ounce of gold soared 0.74% to $2,296.61, shortly after reaching $2,298.91, a new all-time high.
Gold bullion “benefited from dollar weakness and a rise in geopolitical tensions,” summarized Kinesis Money’s Frank Watson.
For Shaun Osborne, chief foreign exchange market strategist at Scotiabank, there is strong buying by central banks, which increases their gold reserves.
The Russian Central Bank is a paradigmatic case: the portion of gold in its reserves rose to 24.5% compared to 20% in 2020.
This ‘de-dollarization’ is motivated, among other factors, by the international sanctions imposed on Russia after the invasion of Ukraine just over two years ago.
In addition, fear of an escalation of the conflict in the Middle East led investors to seek safe haven values, such as gold and commodities.
Iran swore on Tuesday that it would respond to the attack attributed to Israel against its consulate in the Syrian capital, Damascus, which left at least 13 dead on Monday, an unprecedented blow that heightens tensions in the midst of the conflict between Israel and the Islamist group Hamas in the enclave. Palestinian from Gaza.
Source: With information from AFP
