At the current price of $1,930 or €1,720 per troy ounce, gold was more expensive at the end of the first quarter of 2022 than at any time at the end of the quarter. Why is this moment so important?
The vast majority of asset managers, fund managers and investment advisors report on the results of their investment activities not only annually or semiannually, but also quarterly. If gold is in the investment portfolios of professionals, then the shares of this precious metal, which now have record quotes on a quarterly basis, make a positive contribution to the overall return of investment portfolios at the time of reporting and, of course, find mention in the financial reports of many asset management firms.
This, in turn, may spark the interest of retail and other professional investors in investing in gold.
Unlike the price of gold in euros, the value of the precious metal in US dollars has not yet been able to overcome the highs of the start of the Covid-19 pandemic. To break through, prices need to overcome the all-time high of $2063.01 per ounce, which was reached on August 6, 2020. In fairness, it is worth recalling that on March 8 and 9, the market already pushed prices to this record level, but then bounced back twice.
From a chart perspective, the price of gold looks beaten. Therefore, it is important that in the near future prices again overcome the resistance barrier at $1962.