The price of gold is trading near an all-time high, reaching over $2,500 an ounce due to rising geopolitical tensions and a weaker US dollar. The uncertainty surrounding conflicts in Ukraine and the Middle East has increased demand for the safe-haven asset. In addition, expectations of US interest rate cuts and solid central bank demand have contributed to gold’s rally.
Meanwhile, European defence companies are experiencing a drop in stock prices following reports that Germany will not approve new military aid requests from Ukraine. This decision is part of the ruling coalition’s plan to reduce spending, but the German Foreign Ministry has clarified that assistance to Ukraine will be redirected towards international programs.
In the UK, the Bank of England’s interest rate cut in August has already sparked renewed interest in the housing market. Property portal Rightmove reports a 19% increase in potential buyers contacting estate agents since the rate cut. As a result, Rightmove has raised its 2024 forecast for asking prices, now predicting a 1% increase for the year.
The US dollar has weakened to a seven-month low against other currencies, as traders anticipate potential rate cuts by the Federal Reserve. This has also impacted Japan’s yen and the Nikkei stock index. Additionally, energy prices in Britain are expected to rise in 2025 due to recent tensions in the Russia-Ukraine conflict, with wholesale market prices rebounding from previous lows earlier in the year.
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