Spot gold has surged past $4,850 per ounce, climbing 1.83% in a single day and setting a new record high. This rally reflects deep structural shifts in global markets rather than mere short-term speculation.
Three Key Drivers Behind the Gold Rally
- Mounting inflation across major economies is eroding currency value and boosting gold’s appeal as a hedge
- Expectations of prolonged accommodative monetary policies keep real yields low, favoring non-yielding assets
- Escalating geopolitical tensions are driving safe-haven capital into bullion
Gold-backed ETFs have seen inflows for five consecutive weeks, signaling strong institutional interest. Technically, the breakout above key resistance suggests further upside potential. Analysts caution, however, that rapid gains may invite volatility, urging investors to maintain balanced exposure.