Suche
Mein Konto
Gold price rises after terrorist attack - geopolitical risks outweigh despite burdensome interest rate situation
Gold price exceeds $2,000 mark for first time since May Gold price breaks $2,000 mark for first time since May. The geopolitical risks currently outweigh the adverse interest rate situation for the precious metal. Oct 27, 2023 | by Judith Henke Since Hamas' terrorist attack on Israel almost three weeks ago, the price of gold has now risen by almost ten percent - even though the yields on ten-year US bonds have temporarily climbed over five percent. Rising interest rates are actually putting a strain on demand for the precious metal gold, as it does not generate any ongoing income and is therefore less attractive compared to other investments that are considered safe. But the geopolitical risks...
Gold price rises after terrorist attack - geopolitical risks outweigh despite burdensome interest rate situation
Gold price exceeds $2,000 for the first time since May
The price of gold broke the $2,000 mark for the first time since May. The geopolitical risks currently outweigh the adverse interest rate situation for the precious metal.
Oct 27, 2023 | by Judith Henke
Since Hamas' terrorist attack on Israel almost three weeks ago, the price of gold has now risen by almost ten percent - even though the yields on ten-year US bonds have temporarily climbed over five percent. Rising interest rates are actually putting a strain on demand for the precious metal gold, as it does not generate any ongoing income and is therefore less attractive compared to other investments that are considered safe. But geopolitical risks are currently playing a greater role for investors.
According to a report by amp2.handelsblatt.com The price of gold exceeded the $2,000 mark for the first time since May. This increase is due to the geopolitical risks that currently outweigh the interest-related burden on the precious metal.
Although rising interest rates typically weigh on demand for gold as it does not provide ongoing income, geopolitical risks are currently of greater concern to investors. In particular, Hamas's recent terrorist attack on Israel has led to an increase in the price of gold by almost ten percent.
Yields on 10-year US bonds had temporarily risen above five percent, but that did not dampen demand for gold. Investors are currently more likely to rely on the precious metal as a safe investment due to the uncertainty surrounding geopolitical events.
The impact of this increase in gold prices on the market can be varied. Due to increased demand for gold, the price could continue to rise, potentially leading to profits for investors who already own gold. At the same time, however, this could also lead to higher costs for industrial companies that use gold in their products.
In addition, the rise in gold prices could also have an impact on the financial industry. Investors may invest more in gold-related securities, stimulating trade and demand for such products. Banks and financial service providers could therefore become increasingly involved in trading gold and offer corresponding services.
Overall, the rise in gold prices is an indication of the current uncertainty in the market, which is influenced by geopolitical risks. It remains to be seen how this situation will develop and what impact this will have on the gold market and the financial industry.
Read the source article at amp2.handelsblatt.com