Gold set to shine again?

INVESTORS have long held the view that gold is a perennial safe haven investment that performs well in volatile times. It might therefore surprise some to know that the price of gold at the close of 2022 was 7.15 per cent lower year on year – perhaps contrary to what one might expect, given the uncertainties that characterised the year.

However, gold has experienced a rally this year following the banking crisis, with prices rising by 12.4 per cent in March alone. Though the crisis seemed to be under control in April, gold prices continued to climb, growing by 3.54 per cent in the first 20 days of April. Will this trajectory continue? Perhaps so, given the possibility of a weakening US dollar and ongoing geopolitical risks – situations where investors usually turn to gold.

Weakening US dollar

When evaluating whether to invest in gold, it is important to have an eye on the greenback.