Gold Sets a Record High! Breaks All-Time High of US$4,597, What's Behind This Surge?
The global gold price has once again surprised investors by hitting an all-time high (ATH) of US$4,597 per ounce. This increase confirms that gold remains a favorite asset for global investors amidst uncertain economic and geopolitical conditions.
One of the main drivers of the surge in gold prices is expectations of a US interest rate cut. Weak US economic data has made the market increasingly confident that the Federal Reserve will cut interest rates again this year. When interest rates fall, gold's appeal increases because the opportunity cost of holding gold becomes lower.
Furthermore, global geopolitical tensions have also strengthened gold prices. Conflicts and protests in several regions, including the Middle East, have heightened investor concerns. In such conditions, gold is seen as a safe haven asset to protect wealth from global risks.
On the demand side, central banks and institutional investors remain very interested in gold. Gold purchases as a reserve and inflation hedge continue, supporting high prices. With this combination of economic and geopolitical factors, gold has the potential to remain at high levels in the near term. (az)
Source: Newsmaker.id
