Gold price is rising again: Why an investment is now interesting - financial expert explains

Gold price is rising again: Why an investment is now interesting - financial expert explains

According to a report by www.finanzen.net,

After a period of decline, the price of gold has experienced a significant increase again in recent weeks. The price temporarily rose above $2,000, which attracted attention. An expert gives two good reasons why investing in gold could currently make sense.

Marko Behring, Head of Asset Management at Fürst Fugger Privatbank, currently sees two good reasons to invest in gold. In his opinion, the aspects of diversification and hedging have come to the fore again following the latest geopolitical developments and so "the reaction of the gold price to the events in the Middle East" has shown "that gold is still seen as a kind of insurance premium against geopolitical risks and uncertainties in the financial market - and that investors are happy to pay this premium." He also points out that there are historical reasons for investing in gold as well, as gold has been shown to perform particularly well at the end of an interest rate hike cycle.

The US Federal Reserve left the key interest rate unchanged in its last decision, which gives investors hope that the interest rate peak may have been reached. If this is the case, the gold price could also receive a tailwind from monetary policy. Behring believes that it is quite possible that the interest rate peak has already been reached, which, based on historical experience, is an argument for gold.

Despite the increase, some experts currently advise against buying gold. They point out that the current high interest rate environment makes gold unattractive and that a change in the Fed's interest rate policy is necessary for a sustained increase in the price of gold. It therefore remains to be seen how the geopolitical situation will develop and how the US Federal Reserve will act in the future.

This article shows that gold prices are heavily influenced by geopolitical developments and monetary policy decisions. Investors should therefore keep a close eye on developments in order to make informed investment decisions.