Gold price at record high - How sustainable is the boom? Experts analyze the connections between interest rates, inflation and gold.

Gold price at record high - How sustainable is the boom? Experts analyze the connections between interest rates, inflation and gold.

According to a report from www.capital.de, gold prices are rising with no apparent new crisis, confusing many investors. Financial experts disagree about how sustainable this boom is and whether it will last in the long term.

The roller coaster ride at the record mark could also be a foretaste of what awaits us in 2024. Confidence predominates in the analysts' annual analyses, after all, a change in monetary policy by the American and European central banks is expected for the coming year. By the way, at the end of 2022, the forecasts for gold were quite the opposite - according to the textbook, high interest rates were supposed to have a dampening effect.

The mechanism of action for gold has worked very well recently, there is no doubt about that. However, several interest rate cuts are already priced in for 2024 and the upcoming reality check could put gold in more difficult waters. It may become clear that gold will no longer be a safe haven in the second half of 2024.

For most companies, the high interest rate level is a burden and makes refinancing conditions more difficult with a view to 2024. But there are also hidden winners that investors should keep an eye on. It is precisely these falling interest rates that are expected in 2024 and have already been priced in. Gold as a crisis metal could therefore develop in a way that is often observed in election years. New records are certainly possible, but traders in particular should be happy about the precious metal.

It is important that investors and investors pay careful attention to changing conditions and forecasts in order to protect and make the most of their invested assets.