Gold rises in price amid rising geopolitical tensions

The gold’s price again rose above the $1,800 mark. By 8:40 Moscow time, the troy ounce cost increased by $2.10 or 0.12% to $1,801.40. Silver has also risen in price. Its ounce rose in price to $22.54, or 0.66%. Earlier, the price of gold fell on the strengthening of the dollar. The US currency began to grow on expectations of tightening of the Fed’s monetary policy. However, the deterioration of the geopolitical situation has returned investor interest in the precious metal, as it is traditionally used to protect funds in challenging times. Investors are also waiting for the results of the developed countries’ Central Bank sessions. This week the meeting of the ECB and the Bank of England will take place. If the regulators decide to raise the key rate, this will strengthen the euro and the pound. In such circumstances, the demand for gold will impact its price again. It can be expected to fall. However, experts do not expect the ECB to raise the rate, since the regulator has repeatedly stated that it does not plan to make such a decision in 2022.

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Arseny Kudrin

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