It is not (only) the interest rates that make gold shine. The threat of war remains a key reason for ‘revaluation’

Undoubtedly last Monday’s holiday due to Catholic Easter, two were the news that gained international attention. One “speech” was Erdogan’s net defeat in Turkey’s municipal elections. No doubt this result has nothing to do with internal political developments in the country, but also – mainly – how Turkey’s foreign policy will be affected in the wider region. An area which is under way the two most important international wars these days, Ukraine and Gaza. The second “discipline” was the out-of-control ejecting of the price of gold internationally and the gold pound on the Bank of Greece market. He surpassed every historical precedent with over $2262 or ounce, and with TTE buying the gold pound at 475.9 Euro and sell it at 573.4 Euros. Prices first known for Greek data after entry into EMU. For the results in Turkey others will comment with more knowledge and accuracy on the future of happening in the neighbouring country, in the wider region and in Greek-Turkish relations. For gold, however, Eco-clastics may have reason to repeat – for the manyth time – that what changes and accuracy is not gold. What changes is the slip of the real “value” of the coins with which gold is invoiced. These days we have been ‘witnesses’ of an almost horizontal devaluation of currencies , dollar and everything directly or indirectly linked to it. Let’s see them in turn. The dollar appreciation of gold is generally attributed to the fact that, due to the evolution of inflation figures, Fed – and other central banks – is being released to perhaps start in mid-June, reducing interest rates. Indeed, this is one reason why reducing interest rates amounts to monetary relaxation and facilitating access to the dollar, whose supply to the markets depends on the Fed and the American public debt. Debt continues to increase (dangerously) rapidly, so if the Fed reduces the interest rates that are 5% – 5.5%, the dollar will be more accessible and cheaper. But we should not forget that the appreciation of gold (only 9% in three months) was made while the dollar was less available (tapering) and at unprecedented high interest rates… The truth is that – as in the 70s – the rapid appreciation of gold has not only to do with the devaluation/slide of the dollar itself, but with the growing geopolitical uncertainty and threat of war expansion. In other words, something that is now being fueled by Europe’s clean and public ‘prepared’ for a war conflict apparently with Russia. In other words, the Macron statements, Mrs. Von Der Leien’s statements, the rapid increase in equipment costs in the central mostly EU. and the change of EU line. from the priority of turning to the ‘green transition’, ‘equipment’ and ‘defense’, turn the free market forces towards the real and outside control of institutions, ‘values’, i.e. ‘gold’ in physical form… This dynamic also fueled by the growing markets of natural gold by central banks – due to monetary uncertainty – over the last two years have led to the appreciation of gold, or to be more accurate, to the depreciation of the instruments by which gold is invoiced, namely the key currencies in the international money market. Hence the observation of its almost horizontal “revaluation” in all key currencies in recent days… Of course, the fact that yesterday was the holiday of Catholics may have intensified the upward trend in recent days. Which means that today and the next 24 hours there may be some downward adjustment. But this will be temporary, with the upward tendency to “measure” the growing threat of war.