Gold prices surged to a new record high above $4,900 per troy ounce on Thursday, continuing an impressive rally that has seen the precious metal gain more than 70% over the past year. The latest spike saw spot prices peak in the $4,920-$4,950 range, according to major market data sources.
The surge is largely attributed to a confluence of factors, escalating geopolitical tensions, growing expectations for Federal Reserve interest-rate cuts, and a weakening US dollar. As real yields decline, the opportunity cost of holding gold diminishes, while a softer dollar makes the metal more attractive to non-US investors.
This record-setting price highlights gold’s appeal as a safe-haven asset, as investors seek protection against policy uncertainty, market volatility, and a potential economic slowdown. However, the rapid pace of price increases has sparked substantial speculative and momentum-driven buying, raising questions about the sustainability of the rally in the months ahead.
