Gold continues to hold firm above $2,000 an ounce amid continued uncertainty over the health of the US economy as talks over raising the country’s debt ceiling have yet to find an agreement.
The prospect of the world’s largest economy defaulting is keeping demand for gold and its safe-haven appeal very healthy. Add in a Federal Reserve that looks to have come to the end of its hiking cycle and the medium-term outlook for gold looks supportive.
Investors are also closely monitoring developments in Turkey, where it looks as the presidential election is set to go for a run-off with the first vote too close to call. Turkey has been one of the largest buyers of gold in recent years and with the country’s currency taking a battering this year, the latest uncertainty may spur even more demand.
With so many questions unanswered and market confidence still very fragile, the current macroeconomic conditions are perfect for gold to thrive in and should keep the price in this elevated territory for a good while yet.
Rupert is a Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. He brings with him a breadth of experience in writing about energy and commodities having worked as an oil markets reporter and then precious metals reporter during the seven years he worked at Bloomberg News.
As well as market analysis, Rupert writes longer-form thought leadership pieces on topics ranging from carbon markets, the growth of renewable energy and the challenges of avoiding greenwash while investing sustainably.
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