Gold’s Hot Streak: Why Investors Are Buzzing

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Gold prices have surged by over 25% since the beginning of this year, reaching record highs above $3,400 per ounce. Investors are flocking to this safe-haven asset amid global uncertainty. Here’s what’s driving the gold rush and why it’s making headlines.

Geopolitical Tensions Fuel Demand

Conflicts in the Middle East, including tensions between Israel and Iran, have prompted investors to seek refuge in gold. Central banks are also hoarding the metal, with a record 1,000 metric tons bought last year. This trend, reported by the European Central Bank, suggests that gold is surpassing the euro as a leading reserve asset. Emerging economies cite trade conflicts and instability as reasons for stocking up.

Tariff Turmoil Boosts Appeal

President Trump’s tariff policies have rattled markets. Investors are hedging against potential inflation and the fallout from a trade war. Gold’s allure as a store of value shines in these turbulent times. Bank of America predicts gold could hit $4,000 per ounce within a year, driven more by U.S. deficits than geopolitical risks.

Retail and Institutional Interest Grows

Gold isn’t just for central banks. Retail investors are jumping in, with digital gold platforms in India seeing massive growth. Institutional investors are also active, although ETF experts note that there is still room for retail investors to participate. Despite a recent dip below $3,400, gold’s long-term outlook remains strong, making it a hot topic for portfolios.