The economic turmoil continues. Will the price of gold continue to rise?

In a world where economic security is increasingly under pressure, the gold market is emerging as a beacon of stability. Recently, amid turmoil in global financial markets, gold has hit new all-time highs.

Historical highs on the gold market

Gold recently reached an all-time high of €63,304 and at the time of writing the price is settling around €61,000. This record price coincides with increasing economic uncertainty worldwide, including turmoil in the US banking sector. For example, according to the FDIC, unrealized losses in US banks’ investment portfolios have increased significantly. This situation suggests increased interest in gold as a safe investment in times of financial uncertainty.

The current instability of US banks, with significant unrealized losses and increased reliance on the Federal Reserve’s emergency lending facility, highlights the increasing risk in the traditional financial sector. Perhaps this highlights gold’s role as a “safe haven.”

The connection between macroeconomic trends, such as falling interest rates on US government bonds, and the expectation of a possible interest rate cut is also interesting.

All of these factors actually play a role in gold. As we have seen for hundreds, if not thousands of years, gold performs best during times of economic turmoil. Perhaps if the current level of gold prices continues, we can look further upside in the near future.

Gold as a diversification strategy

It is therefore a strategic moment to think about diversification. Including gold in a portfolio can be a wise decision for any investor to diversify risk and benefit from the potential stability that gold offers.

For crypto owners looking to diversify their investments, GoldRepublic now offers an attractive opportunity. When creating an account and making the first purchase of more than 100 euros in gold, silver or platinum, investors receive 60 euros of free gold.

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