Gold price: Credit Suisse drama drives investors into gold and Bitcoin – Economy
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Investors are turning to alternative investments in search of alternative investments gold and bitcoin too. The ongoing uncertainty on the financial markets drove the price of gold above the US$ 2,000 mark for the first time in a long time on Monday. The price of the precious metal rose a good 1 percent to a 12-month high of $2009.59 a troy ounce. The cyber currency gains 6.4 percent and at 28,532 dollars is as expensive as it was around nine months ago. In addition to the turbulence surrounding the major Swiss bank Credit Suisse, speculation that the rate hikes by the major central banks would slow down drove investors into these asset classes, says analyst Timo Emden from Emden Research.
In the morning, the price of a troy ounce (about 31.1 grams) rose to 2009 dollars on the London Commodity Exchange. This is the highest level in about a year. The brisk demand for gold on the market was justified by the initially negative reaction of the stock exchanges to the takeover of the major Swiss bank Credit Suisse by its competitor UBS. The background to the rescue operation are numerous problems at Credit Suisse, which had recently led to considerable turbulence in the European banking sector and on the stock exchange. There has also been unrest in the US banking industry for some time.
Gold is considered by investors to be a classic safe haven that is used in turbulent times. In the past year, the price development was dampened by the sharp rise in interest rates and the appreciation of the US dollar. However, the price has been rising again for a few months. The record high, reached in summer 2020 at 2075 dollars, is not too far away.
What investors should know about gold:
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