The historic rise in the price of gold above $2,500 per ounce reflects growing global economic uncertainty and investors' continued search for safety. Analysts ascribe much of the rally to the prospect of interest rate cuts by central banks, led by the US Federal Reserve, which diminishes the returns on bonds and shares. With the recent increase in gold prices, investors are betting on price rises, highlighting gold’s role as a safe haven during turbulent economic and geopolitical times.
Gold prices have risen significantly since the end of 2019, increasing by two-thirds, with a notable spike since early March this year, as the market reacts to recent wars in Ukraine and Gaza. Antonio Ernesto Di Giacomo, a senior market analyst at XS, emphasizes that the demand for gold rises amid uncertainty. The shift to safer assets like gold is a clear indicator of market sentiment as investors respond to various economic, geopolitical, and monetary factors.
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