Gold is reaching its peak value of nearly $3,000 per troy ounce. Demand is skyrocketing and is sustaining longer than usual, lasting more than three m o n t h s instead of the typical one to two weeks. It is expected that gold could surpass $3,500 per ounce by the end of this year. Fears of trade wars by the US administration and inflation are pushing investors toward safer investments, with gold being the preferred choice in the short term. Gold has surged past $3,000 per ounce, marking a tenfold increase since the year 2000 and significantly outperforming major stock indices.

Kamel Al-Harami

Gold has been performing well among assets, particularly with the arrival of the new U.S. administration. It has risen by about 15 percent since January of this year, due to U.S. tariff policies and the imposition of various import taxes. These factors are contributing to infl ation concerns as well as raising fears of an economic slowdown. As a result, investors are turning to gold as a safe asset to secure their investments both in the short and long term. One advantage of gold is its transparency. It can be bought and sold anywhere in the world. Its price is transparent, with no major restrictions. London and New York are the world¡¯s main gold trading centers. In London, gold is typically traded in 400-troy ounce bars, weighing about 12.5 kg. In New York, however, the standard is a 1 kg bar, similar to those used in Kuwait.

This means gold is often transported from London to New York via Switzerland, which is home to the world¡¯s largest gold refineries, where it is melted down and recast. Recent changes in U.S. trade policies and the imposition of tariffs have led to higher gold prices in the U.S. compared to London, creating trading opportunities to transport gold across the Atlantic. Gold is the yellow metal found in almost every home, and for good reason. It is easy to buy, easy to sell, and most importantly, its price is transparent. Above all, gold is a long-term safe haven for security. It is always there when you need it most.

By Kamel Al-Harami Independent Oil Analyst