Gold, known for being a safe haven asset, has been soaring to new heights like never before. Considering three key factors, let’s explore why gold’s record-shattering hot streak is projected to continue.
1. Persistent global economic instability: Unprecedented financial challenges induced by the COVID-19 pandemic, coupled with geopolitical tensions, have caused economic uncertainty to persist. Investors rush towards gold as a safe haven in tumultuous periods.
2. Devaluation of major currencies: The Federal Reserve’s policies, like many central banks around the world, have focused on infusing excessive liquidity into the market to foster economic recovery. This has led to major currencies’ devaluation, pushing investors to hedge their portfolios with gold.
3. Rising demand from central banks: As part of their reserve management strategies, central banks worldwide have increased their gold purchases, fuelling demand, and consequently, the price of gold. Read More
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