Why is the gold price rising?

The gold price has risen significantly recently, despite the fact that gold itself has faced several challenges recently. A strong dollar, central banks fighting inflation and rising (real) interest rates have all contributed to these challenges. 
 

Factors rise in gold price

Gold prices have probably risen recently for the reasons listed below.

• First, rising geopolitical tensions often cause a flight to gold, as gold has traditionally been seen as a ‘safe haven’.
• Second, the United States and Europe have recently shown their willingness to freeze or even confiscate the assets of adversaries held in the West when tensions rise. This has prompted many managers of large reserve funds outside the West to seek alternatives that carry less risk, with gold often the preferred choice.

Finally, due to inadequate social welfare, many Chinese tend to save a large portion of their income. However, due to increasing distrust about the stability of their own currency, many of them are looking for safer investments in dollars, euros and Swiss francs. This is made more difficult by government policies, leading more and more Chinese to consider alternatives such as gold. To a lesser extent, this is also true for other Asian countries. 
 
The latter factor in particular is probably weighing most heavily lately. This is because there is a big difference between Chinese and European investors. The latter tend to sell the longer an uptrend lasts. For the Chinese investor, however, this often actually constitutes a reason to buy (more). 
 

Gold price forecast 2024

Analysts anticipate a possible correction in the gold price, but suspect that any decline will be quickly met by Chinese purchases. In the coming months to quarters, the gold price is expected to rise further to around $2,700 per troy ounce, with even further increases in the long term.
Buy gold
 

Buy gold

At The Silver Mountain, you can buy gold at the most competitive prices. In addition to gold bars from recognized producers, we also offer the most well-known gold investment coins, such as the Maple Leaf and Krugerrand. The gold investment coins come from official mints, and our gold bars have Good Delivery status, making them globally tradable.
 

Sell gold

Selling your gold or silver is also safe, easy, and fast with us. Through Inkoop Edelmetaal, you can sell your precious metals at the best price with excellent service. Inkoop Edelmetaal is a trade name of The Silver Mountain B.V., and through this website, we buy precious metals from customers who have purchased them from us. You can also sell precious metals that you have bought elsewhere.
We always buy, regardless of the volume you sell and regardless of the gold or silver price.
Sell gold
 
Disclaimer: The Silver Mountain does not provide investment advice, and this article should not be considered as such. Past performance is no guarantee of future results.