Gold prices are soaring, what factors influence the rise?

a. Global Economic Uncertainty

- Russia-Ukraine conflict: Ongoing tensions disrupt global trade and fuel inflation. - Iran-Israel tensions: Rising conflict in the Middle East sparks concerns over oil supplies and regional stability.

b. Central Banks Love Gold!

Central banks' gold purchases over the years seems to rise and be consistent

The Federal Reserve cut its benchmark interest rate, the Federal Funds Target Rate, from 5.75%-6.00% to 5.25%-5.5%. This makes borrowing cheaper and reduces the opportunity cost of holding gold. As a result, gold becomes more attractive to investors.

c. Low Interest Rates:

*Benchmark interest rate is set by the central banks like Federal Reserve

d. Weak US Dollar

A weaker US dollar significantly impacts the global gold market. When the dollar weakens, gold becomes more affordable for international buyers, in countries like China, India, and Russia, where demand is traditionally high. This increased purchasing power drives up demand, contributing to the rise in gold prices. - Turkey

e. Supply & Demand Imbalance

Gold supply can't meet demand, increasing prices. Supply: 2024 gold mine production is expected to reach 3,400 tonnes, up 6% from 2023. Demand: 2024 gold demand is expected to reach 4,800 tonnes, up 12% from 2023. This imbalance of 1,400 tonnes (4,800 - 3,400) is driving up gold prices.

Gold is at an all-time high with the current geopolitical tensions, the economic market and investor sentiment. It's the time to start your journey in Digital Gold!