Gold price development and demand: This is how wars and industrial policy influence the precious metal market

Gold price development and demand: This is how wars and industrial policy influence the precious metal market

According to a report by www.sueddeutsche.de, the price of gold may depend less on geopolitical crises such as those in Ukraine or Israel and more on the interest rate policy of central banks. According to industry expert York Tetzlaff from the Precious Metals Association in Pforzheim, long-term demand for gold in the jewelry and industrial sectors as well as from investors and national banks as well as exchange rate and interest rate developments are important factors that influence the price of gold. In addition, the decisions of the Federal Reserve, jewelry demand in Asian countries, demand from private investors and the importance of gold in the industry also play a crucial role.

In addition, increasing automobile production and growing environmental regulations are also in focus, as gold and other precious metals are essential in the circuit board and catalytic converter industry. Palladium as a storage medium for hydrogen is also seen as having a promising future, which could lead to this precious metal benefiting from further rising prices.

It is also reported that a Federal Reserve interest rate cut could boost gold prices by making interest-free investments more attractive and weakening the value of the dollar in which gold is traded. This could further increase demand for gold, particularly as bonds and interest-bearing investments become less attractive.

When it comes to the price trend of gold, it is important to mention that when the price of gold increases, more scrap gold is sold, which leads to an increase in gold recycling. This development could continue in the coming years and also has an impact on the German precious metals industry, which is the world champion in recycling.

Overall, it can be said that the price of gold depends on various factors, including demand in various sectors, geopolitical developments, interest rate policies, industrial applications and recycling. Investors should keep these factors in mind to make informed decisions when trading gold.