New records for both gold and bitcoin

Published 5 March 2024 at 19.30

Economics. Gold prices continued to rise as expected as international futures­trade opened on Monday and the April futures price hit $2,151 per troy ounce on Tuesday, which was a new record. Bitcoin also hit a new price record during the day.

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During the day, the price of gold surpassed the previous record from December, which was $2,135 per troy ounce.

According to the Financial Times, the price rally in the gold market is due to the fact that the US has used the dollar as a weapon after Russia's invasion of Ukraine, which has caused central banks to look for other assets.

Outside the West, central banks have bought large amounts of gold after the sanctions against Russia, while private gold purchases have increased in China in particular.

A growing belief in American interest rate cuts and investors looking for safe assets have also contributed to the development, according to the Financial Times.

In the last 16 months, gold has risen by 30 percent in dollar terms, which is unusually high for the yellow metal. In kronor – a currency struggling against international headwinds – the price of gold has doubled since the end of 2019.

During the day, bitcoin also broke its previous record from 2021 of $68,789. The cryptocurrency, which has now been integrated into the usual financial speculation system with futures trading as the main form of trading, has made an unparalleled recovery after losing more than half its value.

On the stock exchanges, it is considerably less dramatic. The broad index OMX Stockholm PI closed on Tuesday at -0.69 percent.