Concerned about the possibility of war, smart people are seeking stability in gold. Due to the geopolitical tensions in the world, gold prices are also rising. The Wall Street Journal reported that the world gold price reached $1,902 an ounce on Thursday.
Analyst Matt Miskin at the investment firm John Hancock Investment Management says investors want to hedge risks caused by geopolitical tension.
Global gold prices could rise above $2,000 an ounce due to economic and geopolitical uncertainty, Miskin said. Gold hit a record price of $2,051 in August 2020.
Interest rates are set to rise in 2022 at the Federal Reserve. As a result, US government bond yields have reached pre-pandemic levels, reducing the appeal of gold.
In light of geopolitical tensions easing, analysts anticipate a drop in the price of gold. The price of gold fell by 0.7 percent last Tuesday when the Russian Ministry of Defense announced that part of its forces on the Ukrainian border would return to bases. “You can see how sensitive the price of gold is to current geopolitical tensions,” said Suki Cooper, an analyst at Standard Chartered.
Find your gold bullion from here!