Gold Hits Record High Above $2,600 as Investors Seek Safe Haven Amid Uncertainty
As the prospect of more U.S. interest rate cuts and global geo-political uncertainty continues to rise, gold has soared to a record high above $2,600 per ounce. With bullion already up more than 26% this year, investors are eyeing another milestone of $3,000 per ounce.
Investing in gold can be done through various avenues:
1. Spot Market: Large buyers and institutional investors usually purchase gold from big banks, with prices determined by real-time supply and demand dynamics in hubs like London.
2. Futures Market: Investors can gain exposure to gold through futures exchanges like COMEX and Shanghai Futures Exchange.
3. Exchange Traded Products: ETPs and ETFs backed by physical metal allow investors to track gold prices without owning the metal itself.
4. Bars and Coins: Retail consumers can buy physical gold from metals traders selling bars and coins both in-store and online.
Factors driving the price of gold include:
- Investor and market sentiment
- Foreign exchange rates
- Monetary policies and political tensions
- Central bank gold reserves
Gold is seen as a safe haven during uncertain times, making it an attractive investment option. Recent events such as the U.S. Federal Reserve's interest rate cut and ongoing geopolitical tensions have fueled gold's latest rally.
Central banks continue to hold gold as part of their reserves, with many planning to increase their holdings despite high prices. This ongoing demand, coupled with global economic uncertainty, is likely to support gold prices in the foreseeable future.