The price of gold is on the rise and may rise to new levels, according to the analysts.
Currently, the kilo price of gold is SEK 684,000. On Wednesday, the price reached the highest quotation since November – SEK 699,800 in daily average.
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It is the first time since November 3 last year that the gold price has reached the magic limit.
Record price for gold
The gold price record of SEK 717,969 per kilo was achieved on October 26 last year.
The price of the precious metal often rises in connection with times of crisis and unrest. For example, the highest price ever for gold until then was reached shortly after Vladimir Putin’s illegal invasion of Ukraine in the early spring of 2022. At that time, a kilo of gold cost SEK 647,000.
First time over 700,000
That peak was thus reached in the fall of 2023, when the gold price for the first time reached past 700,000.
Citibank has said that commodity prices may rise past several key benchmarks in the coming year.
It writes CNBC.
The expert has the floor
Michel RufliCEO of Swedish Nordic Gold Trade says that the price will probably rise in the future:
– The gold price has recovered from the cyclical decline. Normally, the gold price goes up this year, he says News24.
He believes the price will rise past 700,000 this year as a new base level, and that both 2024 and 2025 will be strong years for the precious metal.
Trouble in the world?
Right now, many markets are uncertain. There is war in Europe, war in the Middle East and pirates have shut down the Red Sea trade, and more.
– All geopolitical concerns have a positive effect on the price of gold. However, I do not think that the Bitcoin split has any impact. I think policy rates will fall during the year, which will also only be positive for gold, he says.
Good hedge in the portfolio
He thinks that gold can be a good hedge against other investments.
– Gold should be part of a healthy savings portfolio and an excellent diversification, he concludes.
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