Gold Price Goes From Record High to New Record High

When USA keeps running $1.5 trillion deficits and their only answer to $37 trillion in debt is to keep adding debt, they have no choice but to create more money out of thin air.  Even a 5th grader knows that adding more dollars to the table automatically makes the dollars that were already in existence worth less. This leads to inflation.  If they don’t stop creating dollars from thin air they risk making the dollar worthless.  

The reason gold is heading for its best return in 45 years is because many folks are realizing that they want to own something to hold their wealth in besides paper money that is being devalued almost daily.

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The Gold price started the new trading week where it left off the previous week, with a rise to a new record high of currently $2,740 per troy ounce. The 2.4 percent rise in the last week was already the fifth in the past six weeks, Commerzbank’s commodity analyst Carsten Fritsch notes.

“Since the beginning of the year, the Gold price has risen by more than 30 percent. As things currently stand, that would be the strongest annual increase in 45 years. The price increase in recent weeks is also noteworthy because the US dollar has appreciated by more than 3% on a trade-weighted basis since the end of September and expectations of interest rate cuts by the Fed have been significantly scaled back.”

 “The usual price drivers, namely the US dollar and interest rate expectations, can therefore no longer be used to explain the recent strength of the Gold price. Instead, the tensions in the Middle East, and in particular the conflict between Israel and Iran, as well as the uncertainty in the run-up to the US elections in two weeks' time, can be cited as reasons. Another argument is the current positive market sentiment towards Gold.”

https://www.fxstreet.com/news/gold-price-continues-to-rise-from-record-to-record-commerzbank-202410221045