Fear of second wave: Gold is in demand again

The price of gold rose on Wednesday next. At times, he reached 1779,06 dollars per Troy ounce (31.1 grams), the highest level since October 2012. The previous s

Fear of second wave: Gold is in demand again

The price of gold rose on Wednesday next. At times, he reached 1779,06 dollars per Troy ounce (31.1 grams), the highest level since October 2012. The previous screen overcome a half-year High of mid-may, Gold had been on Tuesday afternoon. The previous all-time high from the year 2011 removed by 1921 dollars but still a piece.

Christian Siedenbiedel

editor in the economy.

F. A. Z.

Two factors seem to have this last for the price increase played a role: the low Dollar. If the American currency weakens, the Dollar-traded Gold outside the dollar space cheaper and the demand is increasing. On the other, also have, apparently, increased Numbers of Corona infections all over the world, the demand for Gold and thereby the price is increased again. The increase in the price of gold is therefore not only a crisis symptom, but also. "In the past seven days, as many as have never been infected in all over the world, an average of 150,000 people with the Coronavirus," write the commodity specialists of the Commerzbank.

in Particular, in the United States and in Latin America, the Numbers have increased rapidly. Further stimulation measures of the American government and Central Bank could be necessary, says Commerzbank Analyst Carsten Fritsch: "The depreciation of Money due to the expansion of Central Bank liquidity and government debt would continue." Apparently, there are at least investors, the fear in the Wake of the pandemic inflation and, therefore, buy Gold, and even if the official rate of inflation fell in the Eurozone at the moment, almost to zero.

interest rates will remain low for a long time

It is a foregone anyway, thing is that the interest rates remained for a long time at a low level, said Alexander Zumpfe from the precious metals group Heraeus. "Gold, bring a self-Yes no interest benefits." From his point of view, the investor acted in the Moment "divided" To a concern with the ramp-up of the economy for cautious optimism. The Asian stock markets on Wednesday have reached the morning part of the highest level in four months. In Parallel, however, the infection rates rose in America. This apparently increases the need for security. Numerous economic stimulus packages by governments and Central banks flooded markets with cheap money. The weak Dollar looks Zumpfe as "support" for the height of the flight of gold: "The Greenback was advised to Report growing tensions between the United States and China are under pressure." In the case of the German private investors anyway, the optimism that prevails at the Moment, apparently, the Heraeus dealer says: "they hold back on gold purchases yet."

Many German private investors, Gold is now apparently too expensive

Also reported the gold trading chain, Pro Aurum, the demand for physical Gold is at least as high as in the first months of the crisis. "In the first quarter of the current year, the demand for gold at Pro Aurum had as a result of the Corona-crisis more than doubled – we sold bullion in this period, more than ten tons of gold and coins," said Pro Aurum spokesman Benjamin Summa. In the same period of the previous year it had been just under five tonnes. This "enormous" consumer demand has weakened in the months of may and June, however. One reason was that the German private investors are often with purchases reluctant when Gold on the international markets has already become expensive. "In Dollar we record now on an Eight-year High and in euros, we are far from the alltime high of only 5 percent," said Summa.Many German private investors would currently, there are no real entry-level courses. "Add to that the Corona-the danger of large Parts of the population is considered to be due to the loosening of the measures is significantly lower,"said the Pro-Aurum speakers."However, we are also now in comparison to the prior-year period, still on a very ordinary level of demand."

Updated Date: 24 June 2020, 13:20

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