After a brief correction, the precious metal continues its rally. The reasons are again falling interest rates in the USA and a weak dollar.
The sharpest correction in seven years lasted only a week: On last Tuesday, the gold price again passed the mark of $ 2,000 per troy ounce (around 31.1 grams). This means that the price of the precious metal is now only around three percent below its all-time high from the beginning of August. In the past week, gold had slipped seven percent. The silver price has also recovered significantly after its drop of around 15 percent in the past week and is now trading above $ 28 per troy ounce again. Silver has thus also made up for part of the loss in value in the recent precious metals correction. “The gold skeptics are falling silent,” comment the Commerzbank commodity experts on the market movement.
Gold is benifiting
Gold is benefiting once again from extremely low real interest rates in the US and a weak dollar, the Commerzbank experts added. A brief increase in yields on US government bonds and a recovery in the dollar had temporarily slowed the euphoria of precious metal investors. They then took large profits last week.