The price of gold in Swiss francs has reached a new record, surpassing 2,500 francs for the first time. On January 22, the precious metal closed at 2,504.28 francs, marking a milestone that reflects its increasing attractiveness amid economic and geopolitical uncertainties.
In other currencies, gold prices have also hit new highs in recent weeks. The new record in Swiss francs indicates a slight weakening of the Swiss currency.
This remarkable development in gold prices mirrors a broader global trend. The 44% annual increase of the metal in Swiss francs in 2024 underscores its status as a safe haven, a characteristic it traditionally shares with the Swiss franc. Factors driving this rise include significant purchases by central banks and geopolitical instability.
Concerns have arisen regarding potential new import tariffs from the U.S., which analysts believe could be contributing to the rising gold price. These fears make investors more cautious about traditional investment options, prompting a shift toward gold as a crisis currency.
Additionally, ongoing inflation has bolstered gold's appeal as a hedge against currency devaluation, despite aggressive monetary tightening by leading central banks. The resilience of gold during economic stagnation continues to attract institutional and private investors.
Another noteworthy aspect of the current gold market is the increase in gold lending rates, which recently rose to 3.5% in London, the highest level in over two decades. This phenomenon is attributed to heightened demand for physical gold in the U.S., driven by concerns over potential tariffs.
As a result, manufacturers, including jewelers, are increasingly borrowing gold from banks to safeguard against price shocks, illustrating the unique dynamics currently shaping the precious metals market.