Gold is a bright yellow precious metal known for its beauty and resistance to corrosion. It has been valued since ancient times, both for its use in jewelry and ornaments and for its role in the monetary system. It is found in nature in the form of nuggets, grains in rocks and in alluvial deposits. Recently, the metal ounce reached a new record number in its history.
Widely recognized as a safe haven asset during periods of uncertainty, gold reached a new record historic on Monday by exceeding US$2,265 per ounce. This notable increase is attributed to the anticipation of an imminent reduction in interest rates in the United States.
New all-time record for gold
According to Bloomberg, the gold price It reached said maximum shortly after midnight, although it experienced a moderation to $2,238 per ounce at mid-session on Wall Street (17:00 GMT).
At the close of the previous week, the value of the precious metal had already risen to US$2,225. Analysts attribute this rise to expectations that the United States Federal Reserve (Fed) will begin to reduce interest rates this year, along with solid demand for the asset in other markets.
What is the reason for the increase in the price of gold?
The increase in the value of gold is also due to continuous acquisitions by numerous central banks, which seek to diversify their reserves against geopolitical risks, inflation and the depreciation of the dollar.
Joseph Cavatoni, market strategist at the World Gold Council, told CNBC that this is one of the key reasons behind the rise. Since the beginning of 2023, gold has seen a revaluation of approximately 9%.
What is gold and what is it for?
He gold is a chemical element with the symbol Au (from the Latin aurum) and the atomic number 79. It is a bright yellow precious metal, known for its beauty and resistance to corrosion and oxidation. It has a wide range of uses and applications, including:
- Jewelry and ornaments: he gold It has been used for millennia in the making of jewelry and decorative objects due to its shine, malleability, and resistance to tarnishing.
- Currencies and reserves of value: Historically, gold has been used as currency and is still an important form of investment and store of value. Many central banks maintain reserves of this metal as part of their assets.
- Electronics: Due to its excellent electrical conductivity and corrosion resistance, it is used in a wide variety of electronic components, including connectors, switches, and printed circuit boards.
- Odontology: he gold It is used in dentistry for fillings, crowns and bridges due to its biocompatibility and ease of work.
- Medicine: The properties of gold are used in medical treatments, such as radiation therapy for certain types of cancer and in diagnostics through the use of gold nanoparticles.
- Aerospace: In the aerospace industry, it is used to coat satellites and space suits, thus protecting them from solar radiation and improving their thermal resistance.
- Awards and honours: It is used in medals, trophies and other symbols of achievement and recognition.
Source: Larepublica
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