Gold price continues to reach record highs

Although it is not immediately reflected in the turbulence on the financial markets, at least not the escalation of the US President Trump's economic war against the rest of the world when he tries to maintain the dominance of US imperialism.

The Trump Maga agenda has already sent a demolition ball through the geopolitical post-war order. This is illustrated in the comments by the incoming German Chancellor Friedrich Merz that it is necessary to pursue “independence” of the United States because the American government “was largely indifferent to the fate of Europe”.

While the effects on the financial system are not so obvious, it is clear that tensions and contradictions build up under the surface. One of the clearest expressions is the escalation of the gold price.

It has increased by 44 percent since the beginning of 2024, with 11 percent increased this year. The gold price is now just below 3,000 US dollars, a record high with the predictions that it could soon rise to 3,500 US dollars or even higher.

One of the reasons called the increase is the uncertainty caused by the extensive tariffs that are threatened by the Trump regime equally against friend and enemy. When James Steel, precious metal analyst at Global Bank HSBC, told it Finance times: “When trade contracts take off, gold starts. The more tariffs go, the more this will disturb world trade and the better it will be for gold. “

The drive for gold has led to scenes that have not yet been presented. Dealers have changed gold from London, the main trading center for the precious metal, physically in New York. The rush caused a one -week queue of London vaults made of London vault, which increased the London Bullion Market Association's commitment to delivery within two or three days.

This was the movement that the governor of the Bank of England, Andrew Bailey, had to reassure the calm at the beginning of this month that there was still “a lot of gold”.

In the testimony of the British financial committee, he spoke about the Gold Exodus from London. “Please, that's really not a big deal. Gold does not play the role it used to play. If we had this discussion 100 years ago, we would have been in a completely different world because we were on the gold standard. “

However, such assurances do not deal with the question of why, according to the current Fiat currencies system, a turn to gold has recently been given and why it was led by a number of central banks. The Fiat currencies prevailed after President Nixon shortened the connection between the US dollar and gold on August 15, 1971.

In a report on gold demand, which was granted at the beginning of this month, the World Gold Council, the main industry, said gold demand in 2024 a new record of 382 billion US dollars, including $ 111 billion in the last quarter of the year.

The report states that the demand from the central bank and the demand from the emerging countries were the largest driver of the climb, whereby purchases are more than 1,000 gold gold value in the third time in a row.