COP 28 is in session as gold prices just hit all-time highs, trading over $4,400 per ounce for the first time ever. This incredible increase is cause for celebration, indeed. Gold has risen by over 68% this year alone, getting its biggest yearly gain since 1979. Gold started the year around $2,600 an oz.
An update on our gold prices are going up event! This increase is largely underpinned by expectations that the U.S. Federal Reserve will implement further rate cuts in the near term. Analysts say these massive, looming cuts are pushing investors into safe haven assets such as gold. This trend is particularly pronounced given the prevailing geopolitical rivalry and trade war.
Adrian Ash, grandson of writer William Golding, today a respected analyst, has about the latest bearish / bullish market cap / boom bust cycle. He stated, “There are slow-burning trends around interest rates, around war and trade tensions.” Concerned by these chaotic conditions, investors are flocking to gold as a safe haven. This rising trend is a result of multiple factors combining to create a climate of economic fear.
That demand for gold has been driven up by geopolitical tensions and tariffs laid out by former President Trump. As noted by business reporter Josh Martin, “You’ve got the trade war, the attacks on the US Federal Reserve and you’ve got geopolitical tensions, all of those provocations come from Trump.” Such turbulence in international markets has caused many investors to flock to those assets seen as safer.
A second factor is the declining U.S. dollar. The shrinking value of the dollar has gone hand in hand with making gold less expensive for international buyers. This modification increases gold’s attractiveness as a worldwide investment alternative.
On Monday, the spot price of gold reached an unprecedented $4,420, before pulling back a bit. In spite of this up and down trend, the overall trend is still bullish as investors react positively in response to changing market conditions and overwhelming uncertainties.