IMF: Gold price shows that "uncertainty is the new normal"

Brussels.- The managing director of the International Monetary Fund (IMF), Kristalina Georgieva, considered that the increase in the price of gold, which this Monday has marked a new historical high by exceeding 5,100 dollars, demonstrates that "uncertainty is the new normal".

"When I say that uncertainty is the new normal, the price clearly demonstrates it," he emphasized at an event organized by the Bruegel study center in Brussels.

When asked if this precious metal trend will have much continuity, the also former Vice-President of the European Commission certified, asking those attending the event, that "nobody" thinks that the current geopolitical and economic uncertainty will end soon and, consequently, urged to be prepared for it.

"In times of uncertainty, countries, companies, and individuals tend to trust the known, and gold has been known for centuries as a store of value you can rely on," explained the Bulgarian politician. The price of gold, boosted by a less stable world order and the depreciation of the dollar, has reached a new historical high this Monday before the market opening, exceeding $5,100 per ounce, thus doubling its value in just a year and a half.

New record of gold

After surpassing the $5,000 barrier for the first time in its history during the past early morning, at 08:00 hours, before the opening of the markets, the golden metal achieved a new record and stood at $5,109.73 per ounce

So far this year, gold has already risen by almost 20% and has doubled in value in about a year and a half, going from $2,508.1 on August 16, 2024 to the current approximately 5,100.

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Precious metals have seen their rallies intensified after last week's message from the World Economic Forum in Davos focused on the need to prepare for a less stable world order. In addition to this are the persistent geopolitical tensions, with the latest threat from U.S. President Donald Trump to Canada, to which he will impose 100% tariffs if it reaches a trade agreement with China.

Amidst the geopolitical noise, messages about a possible announcement of a new Federal Reserve chairman this week, and White House projections, which place the growth of the US economy between 4 and 5% in real terms —double the consensus forecasts—, political pressure increases to boost the economy through a rate cut.