The yellow metal has soared to a new record above $1,600 an ounce. It has also made new highs in euros and pounds, exceeding €1,140 and £1,000 respectively. It's been "a perfect storm for gold", says FXPro.com. Europe's stress tests have failed to temper concerns over European banks, and the Fed has signalled that more money printing (QE3) is a possibility.
Investors have also fretted that US politicians wouldn't agree on raising the debt ceiling, causing a credit-rating downgrade and a potential global financial meltdown. Meanwhile, European leaders' inability to agree on a new rescue package for Greece has started to fuel fears of a collapse in the single currency. "If people seriously thought that there was a good chance that the euro would not survive, the associated flight to the safety of gold could easily see prices surge well above $2,000," says Capital Economics.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Review: Eden Roc Cap Cana – fun, sun and golf in the CaribbeanTravel Eden Roc Cap Cana in the Dominican Republic offers everything from relaxing by the pool to a world-class golf course
-
Reeves delays cash ISA reform, but savers are not out of the woods yetThe chancellor has reportedly delayed plans to cut the cash ISA limit, which were set to be announced at Mansion House on 15 July, and will take more time to consult with the industry
-
Do we need central banks, or is it time to privatise money?Analysis Free banking is one alternative to central banks, but would switching to a radical new system be worth the risk?
-
The Bank of England can’t afford to hike interest rates againWith inflation falling, the cost of borrowing rising and the economy heading into an election year, the Bank of England can’t afford to increase interest rates again.
-
Interest rates held at 5.25% againThe Bank of England has kept rates at 5.25% again, in a widely anticipated move. We look at what it means for your money - and what the Bank’s next move could be
-
Britain’s inflation problemInflation in the UK appears to be remaining higher for longer when compared with similar rich countries. Why? And when can we expect a return to normal? Simon Wilson reports.
-
Why did SVB collapse and what does it mean for investors?News California-based Silicon Valley Bank collapsed seemingly overnight, casting doubts over the future of thousands of tech and science startups in the US and the UK.
-
Cost-of-living crisis: a disaster years in the makingAnalysis The cost-of-living crisis has little to do with Brexit, climate change, Covid-19 or war, says Tim Lee
-
Financial calendar – what to expect in the week of 2-6 MayNews A selection of economic events to watch out for in the coming week, including a decision from the Federal Reserve on raising US interest rates, and German retail sales figures.
-
Will the sanctions aimed at Putin have any effect?Briefings Russia’s invasion of Ukraine has changed the West’s strategic calculus and tougher than expected sanctions have followed. Will they be enough to change the course of events?
