Does a hold over $2,000 matter?
Psychologically, finishing the month above $2,000 is a big deal. It shouldn’t be, but it is. After all the $2,000 mark is just one price, in one currency, and gold is a global currency, traded around the world in a number of currencies and you might not even be buying in dollars.
But dollars do still rule the world and the $2,000 price acts as a placeholder for those trading gold. Before you worry where gold will close today, or even in a year, we are reminded of a quote from the late and great Charlie Munger:
“The world is full of foolish gamblers and they will not do as well as the patient investors.”
Gold is snapped up in times of low interest rates, high inflation and global turmoil. And where are things at present? Central Banks are already forecasting when they will start cutting rates, but inflation is clearly still present across a number of industries, currencies are flip flopping and we have a number of fires popping up around the world in the form of war and political posturing between nations. A stable world this is not.