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Gold fever – gold reaches new levels in 2024, but why?

Published by Mattias Söderström in category Articles on 05.04.2024
Gold price (XAU-SEK)
24954,70 SEK/oz
  
+ 43,60 SEK
Silver price (XAG-SEK)
336,13 SEK/oz
  
+ 12,07 SEK
En man med guldfeber efter att guldpriset har ökat

As the price of gold and its development seem to see no end, we are also witnessing a power shift over who actually controls the gold price. Therefore, at Tavex, we have gathered the latest insights from various experts around the world and their views on the gold market!

Continued Rise in Gold Prices

Historically, gold has almost always performed strongly but at a steady pace. During 2024, the price increased by approximately 15 percent in Swedish kronor until the beginning of April. Experts claim that there are several reasons for this, where perhaps the main reasons are:

  • expectations of interest rate cuts by the American central bank, the Federal Reserve
  • the sharp weakening of the American dollar.

This has led to the current gold fever and how the gold price has increased.

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Gold price development over the last 10 years

At the time of writing, the price of gold has increased from 276.14 Swedish kronor per gram to 783.57 kronor per gram, which is an increase of a whole 183.76%.

Graf som visar guldpriset senaste 10 åren

At Tavex.se, you can always see the current price of gold & silver in grams, ounces, and kilos.

3 reasons for the western world’s decreased control over gold prices

The Western world, with countries like the USA and England in the forefront, has historically had the greatest influence on the gold price. Now, however, analysts and experts have seen a major change in who actually determines the gold price today.

The power shift comes from an increased demand and a growing purchasing power from other parts of the world, specifically from countries like India and China.

A major reason why countries from the Western world had such great power around the gold price previously was mainly due to their economic strength and because of the great dominance of the American dollar.

3 major factors behind the power shift

1. Increased demand from other countries

In China and India, there has been a very large increase in demand for gold. This is partly because gold is seen as an important asset for cultural reasons, but also because these countries today have a stronger economy than before, which has created greater purchasing power.

2. Central banks’ increased gold reserves

Central banks in countries with economic growth have actively increased their gold reserves. This is part of a broader strategy to diversify their reserves away from traditional currencies like the weakened dollar and euro. China’s central bank, for example, has been reported to significantly increase its gold holdings over the past few years.

3. Geopolitical events in the world

Many people see gold as a stable asset and as a protection against economic uncertainty when tensions rise between the Western world and countries with strong economic growth.

Will this gold fever continue?

The rise in gold prices during 2024 is not just based on speculative trading but is primarily grounded in the major changes that have occurred in the economy and politics around the world. As the geopolitical uncertainty at the moment does not seem to see a real end, and as various experts believe in continued interest rate cuts – the future for gold therefore continues to look bright.

Do you think the price of gold will soon fall or continue upwards at the same rate as the beginning of 2024? Feel free to comment below! If you want to take the opportunity to sell old gold jewelry lying around at home, it is perfectly fine to sell jewelry via this site.

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Gold price (XAU-SEK)
24954,70 SEK/oz
  
+ 43,60 SEK
Silver price (XAG-SEK)
336,13 SEK/oz
  
+ 12,07 SEK

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