The price of gold yesterday for the first time rose above the limit of 3.900 dollars per 31.1 grams (troy ounce) and reached 3.949 dollars, before slightly falling again.
The price of gold has risen by more than 50 percent since the beginning of the year, and by more than 130 percent over the past three years.
The increased demand is the result of a flight toward safe investments after the yen recorded its largest drop in value against the United States (U.S.) dollar in the last five months. The fall of the yen was caused by the election of the new leader of the ruling party and prime minister in Japan, Sanae Takaichi.
Gold had already reached record values in the past week thanks to the budget crisis in the U.S. and the shutdown of federal government agencies. The rise was driven by growing expectations that the U.S. Federal Reserve (Fed) would continue lowering interest rates.
The investment bank Goldman Sachs raised its forecast in April, along with the persistent rise in the price of gold. The bank’s analysts, led by Lina Thomas, expected that the price of gold would rise to 3.700 dollars per 31.1 grams (troy ounce) by the end of the year. That threshold has now been surpassed.
At that time, they also predicted that the price of gold would rise to 4.000 dollars per 31.1 grams by mid-2026. And as it looks now, with further growth, that threshold could be reached much earlier.
