{"id":49103,"date":"2024-03-07T13:00:00","date_gmt":"2024-03-07T12:00:00","guid":{"rendered":"https:\/\/www.11onze.cat\/?p=49103"},"modified":"2024-03-07T13:14:29","modified_gmt":"2024-03-07T12:14:29","slug":"gold-prices-hit-all-time-high","status":"publish","type":"post","link":"https:\/\/www.11onze.cat\/en\/magazine\/gold-prices-hit-all-time-high\/","title":{"rendered":"Gold prices hit a new all-time high"},"content":{"rendered":"<div class=\"component text\">\n  <div class=\"container\">\n\n\n    <div class=\"row\">\n      <div class=\"col  col-lg-8  offset-lg-2\">\n        <h3><b>Poor US economic data and expectations of interest rate cuts by the Federal Reserve and the European Central Bank push gold prices to a new all-time high of $2,140.6\/oz.<\/b><\/h3>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The price of gold reached an all-time high as it looks ahead to the expected rate cuts by the Federal Reserve (Fed) and the European Central Bank (ECB) in June. On Tuesday the 5th, it reached a new record high of <\/span><b>2,140.6 dollars an ounce, surpassing the previous record set on 4 December<\/b><span style=\"font-weight: 400;\">, when the price rose to 2,135.40 dollars.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Given that according to the analysis made by <\/span><a href=\"https:\/\/www.juliusbaer.com\/international\/en\/\"><span style=\"font-weight: 400;\">Julius Baer<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><b>gold prices rise by 15.5% on average over the 12 months following a rate cut if it is followed by a recession,<\/b><span style=\"font-weight: 400;\"> the expectation of a further cut increases investor demand. That said, if no recession exists, prices fall by 7% on average. In any case, it is a move that would affect US bond yields and the dollar and could lead investors to bet on gold as a safe-haven asset.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We should not forget that the European Union and the Eurozone avoided closing 2023 in recession by the narrowest of margins, mainly because <\/span><b>the German economy, Europe&#8217;s largest, spiralled downwards thanks to the economic sanctions imposed on Russia.<\/b><span style=\"font-weight: 400;\"> The Teutonic country&#8217;s industrial production contracted for the first time since the start of the pandemic.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this context, some financial analysts warn that<\/span><b> a possible rate cut by the ECB is unlikely to have a positive economic impact that will be felt before 2025<\/b><span style=\"font-weight: 400;\">. Jack Allen-Reynolds, an economist at Capital Economics, expects the eurozone economy to &#8220;<\/span><a href=\"https:\/\/edition.cnn.com\/2024\/01\/30\/economy\/europe-dodges-recession-2023\/index.html\"><span style=\"font-weight: 400;\">flatline<\/span><\/a><span style=\"font-weight: 400;\">&#8221; in the first half of 2024 &#8220;as the effects of past monetary tightening continue to take hold and fiscal policy becomes tighter&#8221;.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><b>Consumer confidence on the decline<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Gold&#8217;s strong performance has also been spurred by recently released US economic data, which missed expected targets: <\/span><b>the US manufacturing ISM fell to 47.8 in February from 49.5 expected<\/b><span style=\"font-weight: 400;\"> and 49.1 in the previous month. The continued decline in the sector&#8217;s performance comes after 28 months of growth.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Meanwhile, according to a <\/span><a href=\"http:\/\/www.sca.isr.umich.edu\/\"><span style=\"font-weight: 400;\">survey<\/span><\/a><span style=\"font-weight: 400;\"> by the University of Michigan, <\/span><b>consumer confidence in February also fell to 76.9 from an estimated 79.6<\/b><span style=\"font-weight: 400;\">. &#8220;Consumer confidence moved sideways this month, falling only two points below January and maintaining the gains in confidence seen over the past three months,&#8221; explained Joanne Hsu, the survey&#8217;s director.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This loss of consumer confidence reflects &#8220;<\/span><b>lingering uncertainty about the US economy<\/b><span style=\"font-weight: 400;\">,&#8221; said Dana Peterson, Chief Economist at The Conference Board. <\/span><b>This downward sentiment is mirrored among the G7 countries<\/b><span style=\"font-weight: 400;\">, which recorded significant declines &#8211; Britain (-3.2 points), Canada (-2.1 points) and Germany (-2.0 points) &#8211; in contrast to Asian countries, where consumer confidence is on the rise across the board.<\/span><\/p>\n<p><b>To discover the best option to protect your savings, enter <\/b><a href=\"https:\/\/serveis.11onze.cat\/en\/preciosos-11onze\"><b>Preciosos 11Onze<\/b><\/a><b>. We will help you buy the safe-haven asset par excellence, physical gold, at the best price.<\/b><\/p>\n\n      <\/div>\n    <\/div>\n  <\/div>\n<\/div>\n\n\n<div class=\"component cards\">\n  <div class=\"container\">\n    <div class=\"row\">\n      <div class=\"col col-xl-8 offset-xl-2\">\n        <h1>If you liked this article, we recommend:<\/h1>\n        <div class=\"cards__wrapper\">\n          <div class=\"card\">\n            <a href=\"https:\/\/www.11onze.cat\/en\/magazine\/new-record-high-central-bank-gold-purchases-11onze\/\" class=\"card-link\" target=\"_self\"><\/a>\n            <div class=\"card-img\">\n              <img decoding=\"async\" src=\"https:\/\/www.11onze.cat\/wp-content\/uploads\/2023\/11\/THUMBNAIL_CompreOr-800x533.png\" class=\"card-img-top\" alt=\"\">\n                <span class=\"card-category\">Finances<\/span>\n            <\/div>\n            <div class=\"card-body\">\n              <p class=\"card-title p2\"><strong>New record high for central bank 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