Runaway gold price continued up

Published 21 March 2024 at 07.15

Economics. The price of gold continued to rise as expected during the week, reaching a new record high of $2,223 per troy ounce on Wednesday night.

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The price record was also broken in Swedish kronor when a troy ounce of the yellow metal for the first time was traded for over 23,000 kroner at the same time.

The background is, among other things, increased demand from central banks, which are trying to diversify their reserves away from the US dollar.

“If a country does not have good relations with the United States, owning gold can be a way to avoid seizing their reserve assets, as for Russia,” Bloomberg macro strategist Simon White recently noted in an analysis.

In the last quarter In 2023, central banks bought a total of 229 tons of gold. China, Germany and Turkey have been the largest state buyers of gold in the last six months.

The Swedish Riksbank considers itself to have control over 126 tons of Swedish gold, but 90 percent of this is from someone reason stored abroad.

In Germany, it turned out in 2012 that the country's gold reserve, which is largely kept by the old occupying power the USA, had not been inventoried. Germany then chose to request parts of its gold reserve.

After that incident, the Riksbank invited journalists to “prove” that Sweden's gold was still in Swedish ownership. However, the evidence that was published consisted only of photographs in which then Riksbank governor Stefan Ingves posed with three gold bars, which did not convince everyone that Sweden's gold reserve is intact.