This week, a term that seemed to have been buried since the distant past of Latin lessons reemerged form my subconscious: “terra incognita,” i.e. uncharted territory. The historic term comes to mind in light of the current price chart developments. We have recently seen precious metals reaching new highs which most market players would previously not have deemed possible.
Rising precious metal prices
Gold, silver and platinum added to the series of new record prices, with silver initially attracting widespread attention last Friday when it jumped above 100 US$ per ounce mark for the first time. Gold followed suit, surpassing 5,000 US$ per ounce for the first time, having closed the previous week just below that level. On Tuesday, Wednesday and Thursday morning, prices continued to advance further into uncharted territory.
Gold remains in demand as strategic addition
The appeal of precious metals remains unshaken. Geopolitical and trade policy uncertainties are causing investors to intensify their search for safe havens, also due to this week’s sharp depreciation of the US dollar to its lowest since 2021. Overall, many major investors appear to be pursuing strategies of diversification, a trend which continues to support the gold price.
While gold traded at 4,820 US$ per ounce last Thursday morning, it closed just shy of the 5,000 US$ per ounce mark, at 4,990. As mentioned above, it jumped directly above this level at the start of trading on Monday and remained steadfast, apart from a very brief setback on Monday evening. Over the following days, gold continued to rise until finally reaching 5,595 and traded at 5,515 US$ per ounce earlier today.
Boost for Xetra-Gold
The Xetra-Gold price also entered uncharted territory, up from 132.75 € per gram last Thursday morning to 133.60 at the end of the week. Only slightly dampened by the stronger euro, Xetra-Gold continued its steady ascent and kicked off trading this morning with a new record high of 148.75 € per gram.
Surprisingly, gold has seen virtually no profit-taking recently, as opposed to silver, which was sold by many investors on Monday. Month-end might bring a slight correction, but overall, investors currently remain heavily invested.
I wish all readers sound investment decisions and a good start to the new month.