18 August 2023
Gold recently soared past $2000 an ounce, mirroring its peak during the pandemic’s economic unrest. Previously, the robust US dollar limited gold’s ascent, supported by the Federal Reserve’s early rate hikes. However, with other central banks tightening policies and the dollar’s recent weakening, gold prices surged. The anticipation of the Federal Reserve cutting rates due to softer inflation data and gold’s reputation as a safe asset further bolsters its price.
Other concerns amplifying gold’s allure include US debt ceiling debates, political tensions, and global geopolitical strains. Central banks, especially from nations like China, Singapore, and Turkey, have significantly increased gold purchases in 2022 and 2023, possibly hedging against geopolitical uncertainties.
As we look ahead, many conditions favoring gold’s rise remain.