The precious metal recorded $4,000.01 in early Asian trading, after rising more than 50% since the beginning of the year. Analysts believe that expectations of a reduction in US interest rates have contributed to enhancing the appeal of gold as a safe haven amidst global economic uncertainty.
Traditionally, gold is seen as a safe haven during times of turmoil, which has boosted demand amid geopolitical tensions resulting from conflicts and disputes around the world, such as the Russian-Ukrainian war and the conflict in Gaza.
Additionally, the US government shutdown crisis by the Federal Reserve, which weakened the dollar, supported the yellow metal. Moreover, concerns about the Federal Reserve’s independence increased after US President Donald Trump criticized the central bank for not cutting rates quickly enough, further boosting interest in gold.
These factors are compounded by increasing government debts in major economies and the uncertainty arising from Trump’s tariff policies.
