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March 23, 2023

Gold hits record high of nearly USD 1,440 an ounce

At USD 1,440 an ounce, gold reached on Wednesday the highest level ever, according to a X-Trade Brokers release remitted to “Nine O’Clock, with the yellow metal posting a 7.65 per cent rise since early February.
“However, it was the interest shown in the silver market that exceeded the highest expectations, reaching a three decade high of over 36.5 USD/ounce. From February and up to Monday’s trading session, silver made spectacular gains, up 29.8 per cent. Investors usually buy those two precious metals when inflation or political instability is feared. This time, both engines act concurrently, shooting up the price of gold and silver. U.S. Federal Reserve Chairman Ben Bernanke said that, despite signs showing the American economy is recovering, the ultra-loose monetary policy might continue. Given foodstuffs and petrol prices keep going up, liquidity injection is seen as an inflation generator, which in turn fuels buyers’ appetite for silver and gold,” Victor Safta, general director at X-Trade Brokers said.

On the other hand, the risk of a petrol supply shock amid Libya conflict’s potential expansion to Algeria, or Saudi Arabia mostly, continues inflaming the mood.

China too shows a growing interest in precious metals, according to the report, sales of gold jewellery and bullions jumping 70 per cent this year at Beijing’s largest jewellery shop.

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