Gold prices rose to a new record earlier this week, with the spot price of the precious metal reaching $4420 per ounce today, up 1,7% from the previous day.
A key factor in this growth was US monetary policy, in particular the expectation of further interest rate cuts by the US Federal Reserve, which increased demand for safe-haven assets.
The weakening US dollar has also supported the price of the precious metal as it becomes cheaper for holders of other currencies.
Geopolitical uncertainty and tensions have also added to the metal’s appeal as investors seek protection from market risks.
XTB Research Director Kathleen Brooks believes gold is «completing the strongest annual rise in the precious metal in four decades.»
Despite the strong momentum, some analysts are urging caution as lower trading volumes during the holiday period could increase volatility. liquidity could lead to sharper price movements in both directions, and a short-term correction cannot be ruled out.
Gold Price Changes Data: TradingView
Long-term forecasts remain positive, fueled by robust demand from central banks, geopolitical risks, and a gradual cycle of monetary easing in major economies.