The new increase in geopolitical tensions did not help precious metal prices.
Silver fell particularly sharply (down more than four percent), while gold slipped below $4,700 per ounce of 31.1 grams, leaving it 16 percent off its January record. Everything points to the fact that it is mainly inflationary expectations and the consequent pressure on higher interest rates.
Of course, let’s not forget that the price of gold has almost quadrupled in the last 10 years, with an average annual growth of slightly less than 15 percent, which is already a lot for stocks, so it’s not surprising that they are making a profit, reports SEEbiz.
Gold is playing an increasingly important role in the reserves of central banks around the world, as it already has a 24 percent share. It has even outperformed the share of US bonds recently.
In the last quarter of 2015, the ratio was completely different, as bonds made up a third of central bank reserves, while gold was only 9 percent.
