Gold’s Record-Breaking Rally Continues Unabated

The precious metal is scaling unprecedented heights, fueled significantly by market anticipation of interest rate cuts from the Federal Reserve. This remarkable surge, however, is driven by a confluence of powerful factors beyond just monetary policy expectations.

The prospect of lower interest rates serves as a primary catalyst for the current gold rush. When rates fall, the opportunity cost of holding non-yielding assets like gold decreases, making it more attractive to investors. Simultaneously, such monetary easing typically weakens the US dollar, providing a dual boost for the bullion. A softer dollar makes gold cheaper for holders of other currencies, thereby stimulating international demand.

Beyond interest rate speculation, gold’s traditional role as a safe-haven asset is being vigorously activated.... Read more...