Dollar at 4-year low, gold price hits record

Amid geopolitical instability, global gold prices have risen again. The price of gold in the international market has crossed the $5,200 mark ahead of the US Federal Reserve's monetary policy decision. This is a record for the precious metal.

Reuters reported that the US dollar has fallen to its lowest level in almost four years due to ongoing global concerns. And gold is strengthening after the dollar weakened.

On Wednesday (January 28), the price of gold reached its highest level for the first time, exceeding $5,200 per ounce. Gold has increased by more than 20 percent since the beginning of the year to $5,224.95 per ounce. Gold prices have increased by about 9 percent in the past week.

Due to global political uncertainty and economic crisis, people are now slowly moving towards this precious metal. They are investing in gold. The price of gold is increasing. On the other hand, the value of the dollar, which rules the world, is decreasing.

In response to a question about whether the dollar has fallen enough, US President Donald Trump said on Tuesday that the dollar is still in a good position. Traders assumed that dollar sales would increase with his comments. However, the opposite is true. The dollar has now fallen to its lowest level in four years.

The dollar index says that the dollar was previously 0.22 percent higher against six other currencies, at 96.11.4. This has fallen by more than 1 percent to its lowest level in four years. On Wednesday, it stood at 95.56.6. It had previously fallen to its lowest level in February 2022.

That shock also affected the price of gold. As of 7 am on Wednesday, Bangladesh time, the spot gold price rose by about 1.6 percent to $5,264.20 per ounce. Earlier, at one point in the transaction, the price of gold had reached an all-time high of $5,271.45.

News from TRT World