The gold price was at a high level. On last Thursday, it briefly slid below the $ 1,800 a troy ounce mark. The trigger was a suddenly rising USD, which made up for its previous losses of the day, said Eugen Weinberg, head of commodity analysis at Commerzbank. The setback, however, met with immediate interest in buying, which is clearly positive. On last Friday afternoon, the troy ounce was trading at $ 1,807.60.
ECB meeting with no suprises
The ECB meeting on 16 July brought no surprises and thus proved to be a “non-event”, Weinberg continued. The better than expected US retail sales also left gold largely cold. On the 17 July, interest is directed to Brussels, where EU heads of state and government meet again for the first time in five months to discuss the EU reconstruction fund.
“The resistance, particularly from the Netherlands, to grants without any consideration means that lengthy negotiations can be expected,” Weinberg explains.
Gold is unstoppable
Weinberg concludes, among other things, from the current data from the Institute of International Finance (IIF) why gold has risen so sharply in the past few months and why the precious metal should continue to rise. According to this, global debt rose to $ 258 trillion in the first quarter, which corresponds to 331 percent of global economic output. In the first quarter alone, the debt ratio rose by ten percentage points. For comparison: The value of the gold mined so far amounts to around eleven trillion dollars at current prices.