In France as in the world, the price of gold is soaring

What is behind this gold rush, whose price has jumped 40% in one year? To worry, because gold is the safe haven par excellence and its price follows the barometer of fear. Without intermediaries or speculation, gold appears to be a secure investment. Unlike stocks, it does not promote returns, but protects against real estate crises and stock market crashes. The 1 kg gold bar trades today at nearly 82,000 euros.

**>> The European Central Bank further cuts its key rate by 0.25 points and still forecasts inflation of 2% in the euro zone in 2026

**It is the budgetary situation which worries the French, who see clearly that the country is losing in attractiveness, but also in credibility. Certainly, the financial agency Moody's maintained France's ratingFriday October 25, but she still sent a serious warning, deploring the situation of public accounts and threatening a demotion in the months to come. It is therefore a sort of final warning, a reprieve, while our public debt is soaring and our interest rates are increasing, a sign that our creditors have less confidence in us.

Political instability and budget discussions of the moment do not help anything: the spectacle at the National Assembly reassures neither households nor investors. Everyone says that if tomorrow there are shocks in banking stocks, they will get by thanks to good old bullion.

Uncertainty linked to wars and the American presidential election

For countries, gold is also seen as a good investment. The central banks of the countries are also betting on the yellow metal. Here, it is rather because of geopolitics, the fear of war, with the conflicts in the Middle East and in Ukraine which are getting bogged down.

The gold price is also driven by uncertainty around the American presidential election. Faced with these instabilities, central banks are stocking up. The Banque de France alone holds 2,400 tonnes of gold… But it is not the only one and banks in emerging countries also buy a lot of bullion. China – in ten years – replaced a quarter of the American treasury bonds it held with gold.

All this upward demand is sending prices soaring. In this context, there is no reason for the trend to reverse. Analysts expect gold to continue recording high levels.