Gold hits record high after optimistic economic news

The price of gold has been moving largely sideways since mid-2020. Although the price has risen and fallen somewhat between then and now, we have not seen any major price fluctuations so far. Nevertheless, the price reached its highest level ever on Friday. The skyrocketing interest rates appear to be an important reason – according to analysts, the market is convinced that interest rates will soon be reduced.

Just a quick note: In collaboration with Crypto Insiders, GoldRepublic is giving away 1 gram of free gold worth 61 euros! This promotion runs until December 12th. You can read how it works at the end of this article.

Good news! 🎉 Bitvavo is giving its readers free BTC, XRP or another crypto today 🚀

Powell optimistic in his speech

Last Friday, Federal Reserve Director Jerome Powell gave his speech Periodically speech. This time too, high interest rates and inflation were discussed again, but the central bank has not yet announced a rate cut. Powell believes speculation about such a move is premature for now, as there is still a serious risk of rising inflation.

Still, Powell remained quite optimistic. The annual inflation rate was 3.2% in November, slightly below the expected 3.3%. Additionally, core inflation in the United States has averaged just 2.5% over the past six months, very close to the Fed’s target of 2%. He goes on to emphasize that the economy still looks particularly strong despite the interest rate hikes.

Gold reaches record

The optimistic attitude seems to have spread to investors. On Friday alone, the price of gold rose by more than 1.8%. In terms of both the euro and the dollar, this was a record – even if only by a few euros or dollars.

Read Also:  Grayscale’s Bitcoin ETF will only reduce high costs when the market is “mature.”

The price also closed the day strongly at around 1904 euros per ounce. It was also good news for the stock markets, but gold reacted the strongest so far. If the yellow metal continues its upward trend, it will leave the sideways trend of the past few years behind it.

Investors buying gold now are focusing on Powell’s comments that interest rates are in a restraining range, which could mean rates will be cut soon, professional trader Tai Wong noted on CNBC.

🔔 Today: All Dutch crypto holders get €60 free gold

Get 1 gram of gold for free until December 12th

Investing in gold can be very complicated. You are dealing with a physical metal and the seller must be trustworthy. GoldRepublic makes investing much easier. The Dutch platform offers every crypto holder a gram of gold worth 61 euros free of charge. Please note that this promotion runs until December 12th.

You can get this free gram of gold by creating an account with GoldRepublic and purchasing at least 100 euros in gold, silver or platinum gold. This can be the first step towards a more balanced and potentially profitable investment strategy.

Post views: 0

Recent Articles

Related News

Leave A Reply

Please enter your comment!
Please enter your name here