Since the beginning of 11Onze, we have been informing our community that gold is a great tool to protect savings and that its price would continue to rise. Time has proven us right. In the last five years, it has experienced a spectacular increase in value, doubling its price and reaffirming itself as the most valuable asset on the market.

The price of gold has consolidated above 2,150 euros per ounce after the third consecutive month of upward movement, despite the slight drop in price in mid-May. The strength of its price during the first five months of the year has been caused by strong demand from central banks in emerging economies due to geopolitical tensions and persistent inflation.

Since the beginning of the year, gold has risen 17%, following the upward trend of 2023 when, although it experienced some fluctuations during the year, it rose 15% on the back of the US banking crisis, geopolitical tensions, military conflicts and the US Federal Reserve’s monetary policy.

John Reade, chief market strategist for Europe and Asia at the World Gold Council, noted a month ago that gold prices have experienced a remarkable rally, doubling over the past five years since 2019. What’s more, Reade pointed out that the gold metal’s price performance has been largely independent of that of the US dollar, which is usually one of the biggest drivers of gold prices.

Developing economies lead the way

The WGC analyst explained that emerging markets, particularly India and China, already account for half of the global gold market share after experiencing an increase in production and trade in the precious metal. Furthermore, he expects the price of gold to rise substantially soon, citing continued buying by central banks as the main driver behind the upward trend.

‘We urge investors to incorporate gold into their financial and investment portfolios and to seek diversification. Gold not only diversifies, but also stabilises financial portfolios. Moreover, any reduction in US interest rates is likely to have a favourable impact on gold prices,’ Reade advised.

Other analysts, such as those at Bank of America, expect the rally to continue and believe that a price of 3,000 dollars per ounce is possible by the end of the year. Economic uncertainty, expansionary monetary policies, inflation, and currency devaluation continue to be as relevant today as they were a few months ago and could continue to drive the price of gold in the near future.

Preciosos 11Onze makes it easy to buy gold, at the best price and with total security. Give us a call and speak to one of our agents without any obligation to clarify any doubts you may have and protect yourself from economic crises with the ultimate safe-haven asset: gold. If you want your savings to keep or increase their value, Gold Patrimony.