Gold as a safe haven in uncertain times: How the precious metal benefits from falling bond yields and the prospect of falling interest rates

Gold as a safe haven in uncertain times: How the precious metal benefits from falling bond yields and the prospect of falling interest rates

According to a report by www.finanzen.net,

Falling bond yields and the prospect of falling interest rates are boosting the price of gold. The expectations that key interest rates will fall in the future make gold more interesting as a form of investment because, in contrast to fixed-interest securities, gold does not generate any ongoing income. If key interest rates fall, this disadvantage of the precious metal is reduced - and gold becomes more attractive. This leads to an increase in troy ounce prices.

The gold price correction after the record high at the beginning of December has occurred, but the medium-term upward trend is still intact. The ongoing purchases by central banks and ETF investors are also currently supporting the price of gold.

However, investors should note that CFDs (Contracts for Difference) are complex instruments and carry a high risk of losing money due to leverage. Therefore, investors trading in CFDs should appropriately assess and consider this risk.

Overall, current developments point to continued strong demand for gold, supported by the prospect of low interest rates and uncertainty in financial markets.

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