This Explains Why The World Gold Price Increased Drastically, The Highest Level In The Past 6 Weeks

Today, the world gold price stood at 1,905 USD/ounce, a sharp increase of 30 USD/ounce compared to the same time the previous day, and also the highest level in the past 6 weeks.

The reason for the sharp increase in gold prices, according to experts, is the reaction of investors after the collapse of Silicon Valley banks and Signature Bank.

Basically, gold is acting as an investor's "haven" to hedge against risk and volatility. The USD price is also falling, which is part of the reason that pulls gold up.

The future of gold depends largely on the effectiveness of the Fed's measures. If the Silicon Valley Bank crash proves to be an isolated case, prices could go down.

However, if this crisis causes the Fed to reverse policy, the demand for gold will increase. This is the opinion of precious metals trader at Heraeus.