NY, April 5, 2024 – The price of gold has already reached new record highs several times this year and could continue to rise in the coming months, according to analysts. Juerg Kiener, chief investment officer at Swiss Asia Capital, predicts that the price of gold will reach $2,600 per ounce within a year.
Kiener emphasizes that several factors are driving the rise in the price of gold, including:
- Geopolitical tensions: The war in Ukraine and rising tensions between China and the US are increasing demand for gold as a safe haven.
- Structural factors: Changes in international trade structures and money printing by central banks are reducing confidence in paper currencies and increasing the attractiveness of gold.
- Cumulative demand: There is currently a large demand for gold on the market from investors who are concerned about inflation and recession.
Kiener also points out that a short-term decline in the price of gold could lead to a “short squeeze,” which is a phenomenon where investors holding short positions are forced to buy gold to prevent further price increases. This could drive the price of gold even higher.
Gold is traditionally seen as a hedge against inflation and becomes a popular investment in times of uncertainty. Currently, the demand for gold is growing especially in Asia and BRIC countries, such as China.
Rising Demand for Gold in China
In China, problems in the real estate sector and a decline in the stock market have led to an increase in interest in gold. The Chinese are buying gold as a way to protect their wealth from inflation and market uncertainty.
Conclusion
The price of gold is in an upward trend this year and could continue to rise, according to analysts. This is due to rising inflation, geopolitical tensions, and structural changes in the global economy. Gold is seen as a safe investment in uncertain times and its popularity is growing especially in Asia.
