Gold Surges to New All-Time Highs: And We Aren’t Done Yet!
With a backdrop of economic uncertainty and global volatility, gold has surged to all-time highs. This is continuing a trend of gold breaking its record again and again over the last 12 months. The precious metal’s rise has been pushed by a combination of factors, including inflation, geopolitical tensions in Eastern Europe and the Middle East, and a cutthroat upcoming election.
Hedge on Inflation
In the last month, gold broke a new record and there is reason to believe it will continue to grow. The surge in demand for gold as a hedge against inflation has been a major factor for its continued growth. Central banks worldwide are buying gold to offset inflation as the dollar continues to lose value. As the dollar loses buying power, people are waking up to the danger of relying on Fiat currency. Gold is being used to offset this danger. Gold is not dependent on the Federal Reserve and maintains its value when other assets fail.
Geopolitical Tension
Furthermore, escalating geopolitical tensions and uncertainty in various regions has improved gold’s appeal as a safe-haven asset. There is still the war in Ukraine, conflict in Gaza, and a potential invasion of Taiwan. Furthermore,The Houthi rebels in Yemen are still attacking shipping in the Red Sea. Investors who are seeking refuge from geopolitical turmoil have turned to gold, increasing demand and increasing prices. As the world continues to heat up, there is no reason to believe this trend will slow down.
Election Year
Another reason to watch for gold is the upcoming presidential election. Every year the presidential election becomes more controversial, and this year may be the most controversial we have ever had. With the potential for serious fallout regardless of who is elected, it is no wonder that people will be getting their money out of the financial system and into gold.
Gold Will Continue to Surge to All-Time Highs
For these reasons, their is real potential for gold to continue to breakout throughout 2024. With inflationary pressure, the potential for the Federal Reserve to finally cut interest rates, geopolitical tensions, and a controversial election, gold is in the right position to continue its rise in value in the months ahead.
