While I have never been a gold bug, I do keep a close eye on the gold price. After surging to over US$2,040 per oz immediately after the outbreak of the war in the Ukraine, it has steadily declined and lost more than 17% in value. Today, it trades around US$1,700 per oz.
For gold enthusiasts and others who maintain that gold is the ultimate “store of value”, this is a pretty disappointing outcome as it occurred when global share markets were being trashed. Normally, in times of market uncertainty and volatility, gold does well.
But 2022 is different. Rising US interest rates and a surging US dollar have wreaked havoc on the gold price. The US dollar is once again demonstrating that it is the global “reserve currency”.
Gold Price per ounce in US Dollars – 7/17 to 7/22
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