The gold price rose to its highest level since April on Friday amid ongoing uncertainty on the financial markets. In the late afternoon, a troy ounce (about 31.1 grams) of the precious metal was traded on the London stock exchange at 1965 US dollars. This is around 2.3 percent more than in the morning. In the past week, the gold price has risen by more than 100 dollars. Also calculated in euros, the price rose significantly. Most recently, the ounce cost 1842 euros.
Uncertainty on the markets remains high after the financial market turbulence of recent days. Gold as a safe haven continues to benefit from this. The crisis of the regional banks dominates events. In what JPMorgan calls a "historic move," the troubled First Republic Bank received billions in support from America's largest financial institutions. However, this did not lead to any real reassurance. The major Swiss bank Credit Suisse came under renewed pressure on Friday despite a billion-dollar support package from the central bank on the stock exchange.
"Further developments depend above all on expectations regarding the future policy of the US Federal Reserve," commented Barbara Lambrecht, precious metals expert at Commerzbank. The US Federal Reserve will announce its decision on Wednesday. "If the situation on the market has calmed down by then and the Fed at the same time highlights the need for further action in the fight against inflation, gold is likely to give up some of its recent gains," Lambrecht expects.