Gold prices hit record high, crossing $4,500 per ounce
What's the story
Gold prices have surged to a record high, crossing the $4,500-an-ounce mark for the first time ever. The latest rally comes amid rising geopolitical tensions and expectations of interest rate cuts by major central banks, including the Federal Reserve in the US. Since early 2025, gold has jumped 70%, making it an attractive option for investors looking for stability in uncertain times.
Market dynamics
Global factors driving gold's price surge
The recent surge in gold prices can be attributed to a combination of global factors. These include concerns over oil supply due to a US blockade on Venezuelan tankers, stronger-than-expected US economic growth, and expectations for more interest rate cuts by the Federal Reserve. All these factors have made commodities like gold more appealing as a hedge against potential market chaos.
Investment strategy
Gold's appeal as a safe-haven asset
The rise in gold prices is also due to its status as a safe-haven asset. Investors often turn to gold and other metals when the world feels uncertain, looking for stability. Along with gold, silver and platinum have also seen significant price increases. Even Indian gold prices have witnessed a sharp spike in just two days, mirroring the global trend. In India, 24k gold was priced at ₹13,856 per gram on Wednesday.