Price of gold hits record levels gripping global markets with 14% rise since the New Year

A GOLD rush has gripped global markets — with the price of the precious metal hitting a record yesterday.

Its value peaked above $2,365 per ounce, marking a nine per cent rise in the past month and 14 per cent since the New Year.

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The trend is now on track to beat the huge surge in the run-up to the 2008 financial crisis.

It is also seeing Brits sort through their jewellery boxes to sell old and unworn bracelets and necklaces, according to Peter Kenyon, boss of listed pawnbroking firm Ramsdens.

He said a customer selling a 10gm gold chain necklace would have been paid £160 last year, but would now get about £200.

Mr Kenyon added: “I wouldn’t have thought that gold would have kept rising as much, but it’s due to global factors we can’t control.”

Gold is famously seen as a “safe haven” for investors. It is a cushion when global markets wobble or if there are political tensions or war.

Economists have highlighted that markets have been troubled since Russia invaded Ukraine and the Gaza conflict erupted in October.

But a major driver of the latest rally has been big buying from Chinese consumers and Beijing’s central bank as an insurance policy against the country’s ongoing property crash.

Many Chinese Gen Z consumers have been buying tiny one-gram 24-carat beads every month as safe long-term saving.

Gold also typically rises on expectations that interest rates will fall, as investors seek alternative high returns.

However, the US Federal Reserve has recently made noises that rates will stay higher for longer.

Ole Hansen, head of strategy at Saxo Bank, said the rally is “defying a lot of normal thinking, especially when it comes to still-elevated rates”.

However, Lord Ashbourne, of financiers Edison Group, reckons there is room for gold to rise further and said the rush had “definite echoes of the late 1970s”.

He said: “We think there is a realistic chance of gold hitting US$3,000 an ounce, and an outside chance that it could hit US$4,500.”

If someone had invested £200 on an ounce of gold in 1990 they will have made more than ten times their money, according to the Royal Mint.

CASH TAP DRY FOR PUB FIRM

BRITAIN’S biggest pub company, Stonegate, has raised fears about its survival as it races to plug debts.

The firm owns 4,432 sites across the UK under the Slug & Lettuce, Be at One and Sports Bar & Grill brands, plus 350 traditional pubs under its Proper Pubs banner.

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It has told investors there is a risk £2.3billion of debt cannot be refinanced by a July deadline, so there is doubt over its ability to continue as a “going concern”.

The company posted a doubling in losses to £257million for the year to September 24, despite record sales of £1.7billion.

Accounts say there is a plan in place for refinancing the debt, but no money has yet been raised.

Chief executive David McDowall said: “We continue to work towards achieving our long term balance sheet goals.”

A GREET SHAME

GREETING cards firms have warned that Royal Mail‘s plan to scrap second-class deliveries threatens a cherished British tradition.

Last week, Royal Mail said it would look to cut costs by delivering second-class post only two or three days a week.

Brits spend more on cards per person than any other nation, and Karen Wilson, of independent firm Paper Salad said: “No one wants to see a situation where it’s too expensive to consider sending cards.”

Ofcom has to approve Royal Mail’s plan.

THE maker of Lambrini, Echo Falls and Hardy’s wine has warned it will hike prices to restore profits.

Australia’s Accolade Wines said its losses had increased from £1.7million to £10.7million as a result of higher shipping and bottle costs.

IN POOR HEALTH

THE average business has seen a 55 per cent increase in staff sick leave since the pandemic.

Experts have said growth is being held back by economic inactivity, with a sharp rise in long-term illness since 2019.

A survey of 1,775 small and medium businesses by Access People HR shows sick leave is higher than in 2020 and 2021, when people with Covid were ordered to stay at home.

In 2019 the average number of sick days taken in a company was 81. That figure has kept rising every year, reaching 128 days in 2023.

ASHLEY’S RED CARD ‘OF HATE’

SPORTS DIRECT owner Mike Ashley has blasted his old football club Newcastle United for not letting his firm sell their shirts — because they “strongly dislike” him.

The Toon — once owned by MrAshley — have switched their shirt makers to ADIDAS from next season and signed an exclusive deal to sell them with his rivals JD Sports.

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His lawyers claim he has been unfairly shut out and yesterday told the Competition Court of Appeal that there was a “strong dislike of Mr Ashley” at Newcastle.

The club’s deal even includes a break clause if Mr Ashley ever became a majority owner of JD Sports.

Bosses said it would be “commercial suicide” to supply Sports Direct shops as Toon fans hate their old boss.

But his lawyers argued they should be given stock as they had sold replica kit for years.

Separately, Mr Ashley’s Frasers Group and Next have reportedly filed interest in rescuing bust chain Ted Baker.

DON’T CRY FOR HSBC

HSBC is taking a billion-dollar hit on the sale of its Argentinian business, which has been plagued by a volatile currency in recent years.

The bank is selling HSBC Argentina, which has more than 100 branches and around 3,100 employees, for £435million to a local bank.

HSBC said the sale will see it book a $1billion (£791million) loss, but its shares barely moved as investors were glad that it had sold the business.

This post first appeared on thesun.co.uk