Gold prices are approaching record levels, driven by expectations of monetary easing and a shift away from tech stocks. On Monday, the price of gold touched $4341 per ounce, nearing its October peak of $4375.
Analysts attribute the surge to the Federal Reserve’s anticipated move towards looser monetary policy. Investors are also reportedly reducing their exposure to high-risk technology stocks following substantial investments in artificial intelligence projects.
This year, gold has seen a dramatic rise, exceeding 60% in value. Silver has also doubled in price. Both metals are on track for their best annual performance since 1979. Increased purchases by central banks, particularly China, and reduced demand for sovereign bonds and currencies are fueling this growth.
The World Gold Council reports that holdings in gold-backed exchange-traded funds (ETFs) have increased for most of the year, with the exception of May.
Silver has also experienced a surge, reaching a high of $64.65 per ounce last Friday, driven by speculation about supply shortages following a historic low in October. This recent rally has been significantly supported by these market dynamics.
These trends highlight a significant shift in investor sentiment and a renewed interest in precious metals as a safe-haven asset.
