After setting a new record of $ 1913.50 per ounce on Tuesday, August 23, the price of gold corrected to $ 1826. Mass sales are frequent after reaching another peak. We were able to observe the same correction after reaching the $ 1800 per ounce mark. Now the $ 1,800 price will serve as the basis for further gold growth.
The upward trend in gold remains unshakable as gold is still undervalued. In addition, they improved the fundamentals of gold. Governments and central banks, which have been net buyers of gold since 2010, continue to accumulate their holdings in gold. There are more and more official organizations that look at gold as the only safe haven in times of financial trouble. Recently, German Labor Minister Von der Leyen supported Finland’s demand that those countries that will receive financial aid within the eurozone must provide guarantees for the payment of borrowed funds in the form of gold.
Venezuela’s demand for the return of its physical gold has caused a lot of resonance in the gold market and drew attention to the problem of the physical shortage of gold, especially in relation to the amount of “paper gold”.
Despite the positive news of gold, there are still supporters of the money press who criticize gold and call it a “bubble”. The lack of understanding and lack of interest in gold among the financial press has been observed for ten years in a bullish gold market. Since gold is an undervalued asset, it is often written about more negative than laudatory news, which proves once again that gold is not a “bubble”. Asset bubbles can usually be recognized by their value, not just by the price they are seeing those who have fallen prey to the monetary illusion of fluctuating returns.