12/29/22 Gold Price Rises Toward $1,900
12/29/22 Gold Price Rises Toward $1,900 (1)
Gold Price Rises Toward $1,900
December 29, 2022 7:30 am
Gold, which has been a hedge against rocky markets for decades, is in the midst of a surge. Most likely, that is because people who can afford it are panicked by the stock market sell-off and trouble in the real estate markets. Gold’s price is heading toward $1,900 an ounce, against a price of just about $1,600 in mid-September.
The price of gold today is about $1,825, but it has been in a pattern of rapid increase. Another reason for the rise in the price is that, in some nations, there are ravenous buyers. One of these is China. Bob Haberkorn, a senior market strategist at RJO Futures, told MarketWatch, “Gold is following the decisions by China to further ease COVID restrictions, on the anticipation of higher demand from the region and in spite of rising yields.”
Central banks across the world are also buying gold. This is particularly so in nations where inflation has become a major problem. The central bank in Turkey has been the most aggressive buyer recently. It bought 31.17 tonnes in the third quarter, according to the World Gold Council. Nations where the central bank sold gold sold very little. Among these was the United States, with the largest central bank reserves at 8,133 tonnes. It sold 0.01 tonnes.
Gold has been used as a means to counter drops in home prices. Based on data from the National Association of Realtors, Kitco journalists pointed out that gold topped $1,800 as pending home sales fell 4% in December. Since most evidence points to a drop in both home sales and prices, the upward pressure on gold will continue. Home market price risk will extend well into next year, giving gold’s upward march more support.
Gold is rarely covered in daily financial news like stock markets and real estate market data. As inflation continues to be the major economic challenge, that will change.
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