DECRYPTION – The ounce is approaching 1700 dollars, its lowest level for the year.
What happens to the precious yellow metal? The clouds may well be gathering over the economy – war in Ukraine, galloping inflation, rising interest rates, etc. – but the price of this traditional safe haven continues to decline. Gold thus reached, on Friday July 22, its lowest level since the beginning of the year, around 1700 dollars (-6%). The March 2022 peak at the start of the Russian invasion of Ukraine at $2039, close to its all-time high of 2020, now seems a long way off.
The rise of the greenback for several months is no stranger to this slack. The price of an ounce of gold, the benchmark on this market, is denominated in dollars. And when the US currency regains strength – the dollar is now almost at par with the euro – gold, like commodities in general, tends to plunge. “A high dollar raises the cost of gold. Mechanically the course adapts” , confirms Laurent Schwartz, associate manager of the Comptoir national de l’or.
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