Gold Prices Skyrocket Amid Economic Uncertainty

Gold prices have reached a record high of USD 2,859 per ounce, driven by declining US Treasury yields and concerns over potential trade disruption from Trump's tariff proposals. Investors are turning to gold amid potential US interest rate cuts, making it a preferred safe-haven asset during economic uncertainty.

In an unprecedented surge, gold prices have climbed to an all-time high of USD 2,859 per ounce, undergoing a significant 37% rise over the past year. This upward trajectory is largely attributed to investors seeking refuge in precious metals amidst growing economic uncertainties.

Ajay Kedia, Director of Kedia Advisory, noted that the shrinking yields of US Treasury bonds alongside apprehensions surrounding trade policies proposed by former US President Donald Trump have propelled this record-breaking spike. He emphasized that gold's appeal as a safe-haven asset is magnified as investors navigate the murky waters of prospective tariff-induced trade disruptions.

Meanwhile, expectations of potential interest rate cuts in the US further fuel gold's allure. Trump's advocacy for reduced borrowing costs suggests possible monetary easing ahead, alongside subdued inflationary pressures, which bolsters speculation on Federal Reserve rate cuts. As the global market responds to uncertain trade strategies and monetary shifts, investors continue gravitating towards gold.

(With inputs from agencies.)