According to the data of the Lithuanian Assay Chamber, the price of gold, which had reached unprecedented heights, fell from 5,400 US dollars (4,576 euros) per troy ounce to approximately 4,700 dollars (3,983 euros) in the last week. On Thursday, the price of gold fluctuated around 4,900 US dollars.
“Taking into account Russia’s endless hostilities in Ukraine, taking into account the general geopolitical situation in the world, in the presence of an unstable political and economic situation, it would be difficult to predict the dynamics of the price of gold, as evidenced by the jump in the price of gold in recent years”, – 15min commented Virginija Pavalkienė, Director of the Lithuanian Probation Chamber.
Žilvinas Leškevičius, the manager of the investment gold and silver trading company “Florinus” also notes that last week gold experienced a sharper, in his opinion, emotional correction – not only a record jump was visible, but also a correction and the consequent price drop.
“However, this was only an episode of a few days, which basically does not indicate or show anything – such fluctuations in the price of gold are quite common and extremely normal for both gold and all other assets, such as stocks, etc.,” he emphasized.
“Florinus” photo/Žilvinas Leškevičius
According to him, the price of gold reacts to expectations, interest rates, the value of the dollar, geopolitics or the predictability of the world’s largest economies and movements in financial markets.
“Also, gold is a long-term investment, which is intended for at least 7-10 years, so if the price of gold falls to the same level as it was just over 10 days ago, it really doesn’t make any big difference,” Ž. Leškevičius emphasized.
However, it is noticeable that the population reacts to these fluctuations.
Martyna Danilevičienė, Director of MB “Universal Lombard Services”, said that the price fluctuations of recent weeks are not normal and show that the uncertainty in the markets and in the world is very high and difficult to predict.
“People are definitely carrying more gold than ever due to the increased price of gold. Gold and silver jewelry purchases are more intense when the prices are rising than before, for a very simple reason – people want to have something valuable when the day X comes,” observes M. Danilevičienė.
15min wondered what is an investment when buying gold or its products, and what is not considered an investment.
