The price of gold fell on Friday to its lowest level in over two years in what market analysts see as a result of the evolution of interest rates on capital markets.
This is because higher interest rates make fixed-interest securities more attractive to investors than investing in gold, thereby lessening interest in the precious metal, which is interest-free.
The ounce of gold (31.1 grammes) lost $27 on Friday, dropping to $1,641, its lowest level since April 2020, as central banks hiked their rates in the ongoing fight against inflation.
However, rising tensions in Ukraine could push the price of gold upward, as a safe haven in turbulent times for investors.
