The price of gold soared to an all-time high of $2,141.79 per ounce amid Federal Reserve speculation and global geopolitical tensions.
Bullion’s rapid ascent of as much as 1.3% on Tuesday surpassed its previous record of $2,135.39, set merely three months prior.
The rally in gold, which has seen an over 4% increase since last Thursday, has been fueled by a blend of monetary policy expectations, geopolitical risks, and concerns about equity market corrections.
Market analysts suggest that macro funds and commodity trading advisors contributed significantly to this substantial gain.
Despite the lack of major changes in the Federal Reserve’s monetary policy outlook, gold’s surge surprised many observers with its swiftness and magnitude.
Investors have increasingly sought the precious metal as a hedge against potential market downturns, spurred by signs of a potential stock market correction and the ongoing tensions in various geopolitical hotspots worldwide.
While some uncertainty lingers regarding the timing of the Federal Reserve’s policy pivot, recent indications suggest a growing possibility of rate cuts in the coming months, reinforcing the attractiveness of gold as an investment asset.
The record-breaking surge in gold prices underscores its role as a safe-haven asset amid global economic uncertainties and escalating geopolitical tensions.
As investors seek refuge from market volatility, gold’s allure continues to strengthen, positioning it as a cornerstone of diversified investment portfolios worldwide.