Gold on the rise again after correction

Over the past three months, the value of the gold futures contract for delivery in December 2023 has fallen to as low as $1,827 per ounce from $1,066 per ounce, according to Investing.com. In recent days, however, investors are once again resorting to this safe-haven investment, and as a result the price has started to strengthen, and on Monday was around USD 1,869 per ounce.*

Graph: the evolution of the value of gold futures for delivery in December 2023 over the last 10 years. (Source: Investing.com)*

Although the gold price has seen a slight correction in recent weeks, looking at the five-year chart we can see that in the long term it is still in the "strong" green numbers. Overall, it has gained 50 percent over the period in question. From a ten-year perspective, it is in the green by 55 per cent, which shows that as a long-term investment it is undoubtedly of great importance and can be beneficial not only for more conservative investors, but also in diversifying the portfolios of those who prefer riskier investments.

Silver is close behind

The price of the second most famous precious metal, silver, has also reacted positively, which was at USD 20.9 per ounce just a few days ago. The silver contract for December 2023 delivery closed Monday's trading day at USD 21.9 per ounce. From a five-year perspective, the price is in the same plus territory as the price of the king of precious metals, namely at 51 per cent. Looking at the ten-year chart, however, it is significantly lower - at 14 percent.*

Graph: price development of the silver futures contract for delivery in December 2023 over the last 10 years. (Source: Investing.com)*

Oil prices also rose

Brent crude oil prices rose by more than USD 3 per barrel on Monday during Asian trading hours to reach around USD 87 per barrel.* The dovish comments by Fed officials during Tuesday calmed investors' nervousness and caused the easing of black gold prices, followed by a relatively strong rise in European equities.

Graph: Brent crude oil price development over the last 10 years. (source: Investing.com)*

Future development is questionable

Asset developments in financial markets will continue to react to any signs of an escalation of the conflict and other related events that emerge in the coming days. For the time being, however, the situation seems to have stabilised. In the longer term, US interest rates may be a bigger driver for precious metals.

Olivia Lacenova, chief analyst at Wonderinterest Trading Ltd.

* Past performance is no guarantee of future results.