{"id":284358,"date":"2025-04-17T19:22:07","date_gmt":"2025-04-17T19:22:07","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2025\/04\/17\/why-have-gold-prices-hit-record-highs\/"},"modified":"2025-04-17T19:22:07","modified_gmt":"2025-04-17T19:22:07","slug":"why-have-gold-prices-hit-record-highs","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2025\/04\/17\/why-have-gold-prices-hit-record-highs\/","title":{"rendered":"Why have gold prices hit record highs?"},"content":{"rendered":"
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Gold has been reaching record highs of late, with the price of spot gold hitting $3,357.40 (\u00a32,532) per ounce for the first time ever on Wednesday.<\/p>\n

It marked a rise of around $700 (\u00a3528) this year and comes at a time of significant uncertainty over Donald Trump’s<\/strong><\/a> tariffs on imports into the US.<\/p>\n

That is no coincidence.<\/p>\n

That’s because gold is a tangible commodity – a physical good that can be bought and sold.<\/p>\n

Gold prices fell more than 1% on Thursday after a sharp rise in the previous session as investors booked profits ahead of a long Easter weekend.<\/p>\n

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\n The open pit gold mine of Goldcorp in Penasquito, Mexico. Pic: Reuters
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An estimated 3,000 tonnes are mined each year, with China mining the most gold in 2024, followed by Russia, Canada and the US.<\/p>\n

And the Bank of England holds the world’s second biggest known trove, with roughly 400,000 gold bars worth billions of pounds sitting in its vaults.<\/p>\n

So why is it going up in value?<\/p>\n

Gold considered a ‘safe haven’<\/strong><\/p>\n

The precious metal is known as a “safe haven” – an asset that typically retains or increases in value during times of market turbulence or economic uncertainty.<\/p>\n

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\n Gold bars are displayed at a gold jewellery shop in the northern Indian city of Chandigarh. Pic: Reuters
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Investors typically flock to safe havens to protect their capital from losses when markets are volatile.<\/p>\n

So it’s perhaps no surprise that its value has skyrocketed at a time when markets around the world have been unsettled by the introduction and temporary rolling back of some US tariffs<\/strong><\/a>.<\/p>\n

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“Gold remains heavily supported by a broadly weaker dollar, uncertainty around tariff announcements and fears about a global recession,” said Lukman Otunuga, senior research analyst at online trading broker FXTM.<\/p>\n

Singapore-based dealer GoldSilver central managing director Brian Lan added: “Gold will continue to be strong as long as there’s uncertainty.”<\/p>\n

Read more:
Sainsbury’s profits top \u00a31bn after closing cafes and cutting jobs<\/a>
What you can’t now bring into Britain from EU under new rules<\/a><\/strong><\/p>\n

Gold saw a similar surge at the start of the COVID-19 pandemic, but has been on an upward trend for years.<\/p>\n

Popular investment, but not without risk<\/strong><\/p>\n

Those in favour of investing in gold argue it can serve to diversify and balance your investment portfolio, as well as mitigate possible risks down the road.<\/p>\n

Some also take comfort in buying something tangible that has the potential to increase in value over time, and which isn’t directly tied to global currencies.<\/p>\n

But gold sceptics warn people to be wary.<\/p>\n

The Commodity Futures Trade Commission has previously warned that precious metals can be highly volatile, and prices rise as demand goes up – meaning “when economic anxiety or instability is high, the people who typically profit from precious metals are the sellers”.<\/p>\n

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It adds that if you do choose to invest in gold, it’s important to educate yourself on safe trading practices and be cautious of potential scams and counterfeits on the market.<\/p>\n

And while gold being a tangible currency is in many ways seen as a plus, it also means it can run out; and some analysts estimate it will do so in less than three decades.<\/p>\n

You can read more about the impact of a gold shortage here<\/a><\/strong>.<\/p>\n<\/p><\/div>\n


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Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Gold has been reaching record highs of late, with the price of spot gold hitting $3,357.40 (\u00a32,532) per ounce for the first time ever on Wednesday. It marked a rise of around $700 (\u00a3528) this year and comes at a time of significant uncertainty over Donald Trump’s tariffs on imports into the US. That is […]<\/p>\n","protected":false},"author":2,"featured_media":284359,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","fifu_image_url":"https:\/\/e3.365dm.com\/24\/07\/768x432\/skynews-goldmine-gold_6637602.jpg?20240724083116","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[2336,7572,1028,2364,1541],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/284358"}],"collection":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/comments?post=284358"}],"version-history":[{"count":1,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/284358\/revisions"}],"predecessor-version":[{"id":284360,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/284358\/revisions\/284360"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media\/284359"}],"wp:attachment":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media?parent=284358"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/categories?post=284358"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/tags?post=284358"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}