By our economics editors
Dec 4, 2023 at 7:32 AM Update: 13 minutes ago
The gold price rose to an unprecedented high on Monday. This is mainly because the dollar is becoming less valuable. The price of the precious metal rose to $2,135 per troy ounce (31.1 grams).
Later on Monday, the price dropped again to below $2,100. Nevertheless, the old record level from August 2020 was broken on the metal market in Singapore. This was $ 2,075 and was partly due to the uncertainties surrounding the coronavirus.
The gold price has been rising for weeks now, mainly due to the weaker dollar. This decreases in value because the banking industry speculates that the American bank will lower interest rates again in the spring. Federal Reserve Chairman Jerome Powell Powell said it is too early to speculate on a rate cut.
A weaker dollar makes gold cheaper for traders with other currencies. This creates more demand and drives up the price.
Other unrest this year also pushed up the gold price, such as the war between Israel and Hamas. Investors looked for investments that they considered safe.
The important American jobs report will be released on Friday. That report plays a major role in the Fed’s interest rate policy.
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