Wednesday, January 8, 2020
Gold market dynamics.
The gold price rose above 1,570 dollars per troy ounce this week for the first time since April 2013. This follows a near-20% gain last year, the largest in a decade. Moreover, this came as the dollar largely flatlined last year, and the unusual extent to which the gold price outpaced the dollar led it to a record price in many local currencies. Interest rates fell worldwide in 2019 and long positions in gold, which benefit when it increases in value, tripled compared to the 2014-18 average.