Gold prices have surged to new all-time highs
The Gold Market Hunts for Answers Behind Bullion’s Sudden Surge
The gravity-defying rally has confused seasoned analysts
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Gold prices have surged to new all-time highs.#gold #ETFs #Inflation pic.twitter.com/KSdHnGSuci
— The_Journalbiz (@the_journalbiz) April 8, 2024
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Gold’s scorching run to an all-time high may seem easy to explain from a distance, given the fractious geopolitical climate and murky outlook for the global economy.
The precious metal is famously seen as a “safe haven,” and the general view is that bullion prices should rise when interest rates fall — which many investors expect will happen later this year.
After trading in a fairly steady range for months, bullion started spiking in early March. It’s risen 14% since then and left a string of daily records in its wake. But geopolitical tensions have been high for months, even years, and if anything the outlook for the timing on rate cuts by the Federal Reserve has become muddier in recent weeks.
- central banks, as well as big institutions and traders preparing for a shift to looser rates.
The mystery has sent industry insiders poking through the plumbing of a massive global trade that stretches across futures and exchange-traded funds from New York to Shanghai to a huge over-the-counter hub in London and a world-spanning web of dealers selling bars, coins, and jewelry to everyone, everywhere.
It’s an opaque and complex world that’s historically been hard to crack open. Still, the market and regulators have been on a years-long drive to boost transparency, increasing access to data that helps shine a little more light on the gravity-defying rally in one of the world’s oldest stores of wealth.
