Gold is once again taking center stage on international markets. Today, the precious metal has reached new historic highs, surpassing the $3,500 per ounce mark, driven by a combination of economic, financial, and geopolitical factors. But what explains this sharp rise in gold and what does it mean for investors and savers?
1. Gold as a safe haven in times of uncertainty
Whenever the global economy faces turbulence, gold regains its traditional role as a safe haven asset. The current situation is no exception:
- Political instability in the United States.
- Concerns about the strength of the dollar.
- Mistrust of Treasury bonds as a safe investment.
Given this outlook, investors are migrating to gold, driving up its price.
2. Expectations of rate cuts by the Fed
The market is anticipating that the US Federal Reserve (Fed) will cut interest rates at its September meeting. Why is this important?
- Lower rates reduce the appeal of bonds and other fixed-income assets.
- Gold, which does not generate interest, becomes relatively more competitive.
- Global capital flows into precious metals, increasing demand.
In other words, the possibility of lower rates fuels the rise in gold.