Gold Price Surges to Record $4,000 as Investors Seek Safe Haven
Gold prices have reached a record high, breaking the $4,000 per ounce mark for the first time. This surge is being driven by investors seeking crisis-proof options and expectations of US Federal Reserve rate cuts. Central banks worldwide are also contributing to this upward trend by increasing their gold purchases.
Analysts attribute this gold rally to several factors. Larger purchases by central banks, particularly in the first quarter of 2025 when they collectively bought 244 tonnes net, have provided significant support. Additionally, increased interest in gold-backed ETFs, a weaker dollar, and robust consumer demand are all playing their part.
UBS analyst Giovanni Staunovo has observed that investors are continuing to buy gold despite its elevated price. This strong demand, coupled with the other influencing factors, has pushed the gold price to unprecedented levels.
The gold market is witnessing a significant rally, with prices exceeding $4,000 per ounce. This is largely due to investors' preference for crisis-proof assets and central banks' increased gold purchases. As these factors persist, the gold price is expected to remain elevated.
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