{"id":49934,"date":"2024-04-26T17:00:00","date_gmt":"2024-04-26T15:00:00","guid":{"rendered":"https:\/\/www.11onze.cat\/?p=49934"},"modified":"2024-06-12T08:44:17","modified_gmt":"2024-06-12T06:44:17","slug":"gold-prices-hit-new-low-good-time-buy","status":"publish","type":"post","link":"https:\/\/www.11onze.cat\/en\/magazine\/gold-prices-hit-new-low-good-time-buy\/","title":{"rendered":"Gold prices hit a new low: a good time to buy?"},"content":{"rendered":"
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Gold prices are poised for their biggest weekly dip since 8 December because of de-escalating geopolitical tensions and little prospect of an immediate Fed rate cut. Is this just a temporary correction after a long period of record highs?<\/b><\/h3>\n

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Although it has recovered slightly this Friday for the second day in a row to 2,182 euros per ounce, gold looks set for its biggest weekly loss in value since 8 December 2023. This downward correction has been driven by <\/span>lower demand for safe-haven assets as tensions in the Middle East between Iran and Israel have eased<\/b>.<\/span><\/p>\n

Historical precedent has taught us that gold price rises or falls in the face of geopolitical tensions or the outbreak of armed conflict often respond to the <\/span>perceived risk of stock markets and governments<\/b>.<\/span><\/p>\n

On the other hand, <\/span>investors do not expect the Fed to cut interest rates in June and July this year<\/b>, which suggests that we are not facing a possible economic slowdown that historically tends to boost demand for the golden metal.<\/span><\/p>\n

Also, a delay in the US central bank’s interest rate cuts compared to central banks of other G7 economies <\/span>favours the performance of US assets with low-interest rates<\/b>, such as Treasury bonds, to the detriment of assets that do not generate fixed returns, such as precious metals.<\/span><\/p>\n\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n\n\n

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