By Swann Collins, investor, writer and consultant in international affairs. Eurasia Business News, October 4, 2022
Gold prices secured growth today, jumping to $ 1,731 per troy ounce, as investors are expecting a pivot of the U.S. Federal Reserve, amid high inflation, higher interest rates and economic recession.
On September 30 gold prices had hit a high of $ 1,676 per troy ounce. Gold prices were navigating between $ 1,614 and $ 1,626 per troy ounce on September 28.
The rise in gold prices is driven by the pivot of the Bank England last week, when it made the decision to resume purchase of British government bonds to support the falling sterling pound. Persistent high inflation also continues to pressure the purchasing power of paper currency. Investors and consumers then buy gold and silver bullions to secure wealth amid uncertain times in Europe and the United States.
Read also : How to invest in gold
Euro area annual inflation is expected to hit 10% in September 2022, up from 9.1% in August according to a flash estimate from Eurostat, the statistical office of the European Union.
The situation is also critical in the United States, where annual inflation hit record 9.1% in June, 8.53% in July and 8.3% in August.
The best performance for gold in 2022 was in Turkey, where the lira fell 52% amid staggering 80% annual inflation. Since the beginning of the year, the price of gold has doubled, helping forward-thinking investors protect their assets from the rapid rise in consumer prices. Turks have traditionally invested in the precious metal, and many still prefer it as a store of value, according to a survey conducted by the Areda Survey in May. Nearly 43% of respondents said they consider gold to be the best form of investment.
The exchange rate of euro/dollar now is : 1.00 euro for 1.00 dollar
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© Copyright 2022 – Swann Collins, investor, writer and consultant in international affairs.