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Photo: Uli Deck / dpa
Gold's hunt for records continues: On Friday, the price of the yellow precious metal reached an all-time high for the fourth day in a row.
A troy ounce (around 31.1 grams) cost a peak of $2,185 on the London Stock Exchange, which is more than ever before.
The previous day's record was beaten by about $21.
The price of gold is driven primarily by speculation about falling key interest rates in the USA and the Eurozone.
The speculation was given new fuel on Friday by figures from the US labor market: unemployment rose significantly in February, while wage growth weakened.
Both speak for foreseeable interest rate cuts by the Federal Reserve.
The European Central Bank (ECB) is also heading for lower interest rates, as numerous speakers indicated on Friday.
If interest rates fall, the disadvantage of interest-free gold investments fades into the background to some extent.
Gold, which is considered a crisis currency, is also in demand because of numerous geopolitical risks such as the wars in Ukraine and Gaza.
The third factor that speaks for rising gold prices is the consistently high demand from some major central banks, including China in particular.
Many private investors also consider gold to be a “safe” crisis investment.
The positive image of the precious metal is partly based more on the myth of gold than on actual advantages.
The price of gold shows hardly any less drastic fluctuations in value than share prices.
For investors who have to sell their gold in such a weak phase, the precious metal is not a stable investment.
The “Finanztip” portal also points out that gold often produces significantly lower returns over longer periods of time than investments in broadly diversified index funds.
These are called ETFs.
You'll find more about it here .
beb/dpa