Gold breaks the barrier of 4 thousand dollars … a safe haven without ceiling

According to futures data, prices amounted to $ 4014 an ounce in morning trading, to rise by about 50% since the beginning of the year, bypassing the performance of most of the shares of the “Standard & Poor’s 500” index.

Analysts believe that what is known as the value -cutting trade, “that is, the trend to buy safe assets such as gold, is behind the great rise, in light of the decline in confidence in the American dollar and treasury bonds.

Goldman Sachs said that it raised its expectations for the price of gold to $ 4900 an ounce by the end of 2026, noting that strong investment flows from central banks and the release boxes are continuing.

A memorandum issued by the bank analysts indicated that the increasing flows from emerging markets and Western investment funds constitute a “new starting point” towards a higher gold pricing during the next two years.

According to the World Gold Council, the investment funds circulating in gold achieved record revenues amounting to $ 17.3 billion last month, driven by political tensions, poor dollar and market activity.

Experts believe that global central banks – especially in Asia and the Middle East – continue to buy gold heavily to diversify their reserves and reduce their dependence on the US dollar.

Meanwhile, analysts warned of the possibility of a limited price correction in the event of the dollar recovery, but they stressed that the general trend remains bullish in light of the tense geopolitical conditions and financial uncertainty. (Investopedia)