Gold price to highest level in five years

Gold price to highest level in five years

The upsurge in the price of gold does not seem to be stopping yet. The price of gold has risen to its highest level in five years. The rise will mainly be related to further interest rate cuts, which central banks are working on.

The price of gold rose 1.4 percent during the trading session on Thursday to 1,383.80 dollars (about 1,224 euros) per troy ounce (31.1 grams). This is the highest price since March 2014.

It is well known that the price of gold has been rising since the trade dispute between the United States and China got out of hand. Gold is a so-called safe haven and an insurance against inflation.

Role of the US central bank

The US dollar fell last Wednesday after the US central bank announced that further interest rate cuts may be imminent. Gold is often bought in dollars, which makes the precious metal cheaper.

The higher gold price also affects mining stocks. For example, the share of Australian mining company Northern Star Resources increased by more than 8 percent.

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