Gold is coming back… Ready to grab some and how high could it go?

Gold is coming back… Ready to grab some and how high could it go?

Sometimes they say US$ is a safe haven when there are uncertainties since this is the largest reserve currency in the world. We just need to understand that when it comes to value of money, it’s a perception. However, there is one metal which always do well when it comes to uncertainties. That metal is GOLD. With the current wars happening in Middle East, it seems that people are again looking at gold as a safe haven for their assets. Thus, the gold price has been moving upwards and is in very active trade currently. Here’s the news:

Article in nst.com.my. Gold prices climbed on Friday, supported by safe-haven demand arising from the Middle East conflict, while spotlight shifted towards U.S. payrolls report to gauge the trajectory of the Federal Reserve’s policy path.

Spot gold was up 0.3 per cent at US$2,662.72 per ounce, as of 0649 GMT, after climbing to an all-time high of US$2,685.42 on Sept. 26. Bullion has gained 0.2 for the week.

U.S. gold futures edged 0.2 per cent higher to US$2,682.90.

Geopolitical tensions, particularly concerning Israel and Iran, are supporting gold prices and unless these risks subside, prices are likely to remain near record levels, said Ajay Kedia, director at Kedia Commodities, Mumbai. Do read the full article here: Article in nst.com.my.

Just buy and keep and only look back when needed

I remember very clearly the first time ever I bought gold for my wife, it was less than one third of today’s price. Thus, even if I could spend the same amount today versus then, the weight of the item I could buy for gold is 3 times lighter. As the value of money continue to be eroded by inflation, we do not need to worry too much about the price of gold 20 years from today. Even if it’s just following the inflation rate, when we sell the gold we have 20 years later, it’s a hedge against inflation.

Well, until and unless they have found another metal which could replace gold totally in usage and emotional aspects too. Happy understanding.

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