Why gold prices are at record highs

Gold Prices Surge as Investors Seek Safe Haven #

Amidst expectations of interest rate cuts by the Federal Reserve, gold prices hit record highs, reaching $2,364 per ounce on Tuesday. The surge in prices is attributed to investors’ belief in gold as a safe haven and central banks, including China, buying up gold to reduce reliance on the US dollar. Other factors contributing to the rise in gold prices include inflation hedging and increased demand from Chinese investors amid property and equity market downturns. The trend of central banks buying gold is seen as a sign of decreasing reliance on the US dollar. Higher oil prices are also driving concerns of inflation, further boosting gold prices.