The price of gold evolved on Tuesday above $ 1,700 an ounce after reaching a new peak in seven years, stimulated by the weakening of the dollar and the prudence that dominates among investors.
By 08:05 GMT, the ounce of gold reached $ 1,728.09, a level not seen since the end of November 2012.
This new rise is not related to a rapid return of risk, but rather to the enormous increase in the balance of the Federal Reserve, “explained Carlo Alberto De Casa, analyst for Activtrades.
By adopting a monetary politics extremely accommodative, the Federal Reserve (Fed) has made the dollar less attractive.
On the other hand, if the pandemic of coronavirus continues to plague the world, with more than 117,000 dead, some of the most affected countries glimpse a ray of hope.
This could have weighed on gold, the traditional safe-haven value, but it was especially the dollar that suffered, while “investors rushed to the precious metal in anticipation of potentially frenzied price movements in the coming days and weeks,” explained Ipek. Ozkardeskaya, analyst at Swissquote Bank.
In fact, the earnings season is about to start in the United States and, according to the firm Factset, analysts expect a 10% decrease in profits for companies in the S&P 500 in the first trimester.
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