Gold prices hit record high: What's driving the surge
Gold prices soared past $4,000 per ounce this week, marking a 54% jump over the past year—the biggest leap since 1979.
This rally comes as investors bet on upcoming US Federal Reserve rate cuts and look for safe places to park their money during global uncertainty.
Why gold's shine is blinding right now
When things feel shaky—like now, with a US government shutdown delaying key economic data and tensions in the Middle East—gold becomes a go-to safety net.
For anyone thinking about investing or just curious about what's driving markets, this surge shows how quickly people turn to gold when they're worried about inflation or unstable currencies.
Factors behind the surge
The main drivers: Most traders expect the Fed to cut interest rates later this year (with odds at 94% for October and 79% for December).
Plus, central banks worldwide have boosted their gold reserves by 415 tons in early 2024, especially as countries look to rely less on the US dollar.
All this demand is keeping gold prices strong—even as some investors cash out for profits.