Gold prices have surged, breaking records and exceeding $5,100 per ounce, driven by safe-haven demand fueled by geopolitical tensions, trade uncertainties, and a weakening US dollar. Central bank buying and increased investment in gold exchange-traded funds further support this uptrend, while the market awaits the Federal Reserve’s upcoming policy decision.
- Gold prices rose over 1% to $5,080 per ounce, reaching record highs.
- Safe-haven demand is strong due to trade and geopolitical uncertainties.
- Trump threatened 100% tariffs on Canadian goods if Canada forges a trade deal with China.
- Tensions between the US and Europe over Greenland, as well as Middle East tensions, are contributing factors.
- Risks of a US government shutdown are surfacing.
- The market anticipates the Federal Reserve’s meeting, where rates are expected to remain steady.
- The US Dollar Index is at its lowest level since September 2025, pressured by expectations of Fed rate cuts.
- The People’s Bank of China (PBOC) has been buying gold for fourteen consecutive months.
- Emerging market central banks were also active gold buyers.
- Global demand for gold investments through exchange-traded funds increased significantly.
- Gold holdings in ETFs have risen substantially.
These market conditions indicate a strong bullish sentiment towards gold, supported by both economic and political factors. The weakening dollar, coupled with ongoing global uncertainties, makes gold an attractive investment. Expectations surrounding future Federal Reserve policy and continued central bank demand suggest that this upward trend may persist in the near term, although rising Treasury yields may temper gains.