Global Instability and Gold Prices

The recent surge in gold prices can be attributed to the growing global instability. The uncertainty surrounding the US President Donald Trump’s tariff policies has led investors to seek safe-haven assets, and gold has emerged as the preferred choice. • Key factors contributing to global instability:

The uncertainty surrounding the US presidential election has led to a surge in gold prices.

The Impact of Lower Inflation on Gold Prices

Lower inflation rates have a significant impact on the gold market, as it increases the demand for gold and subsequently drives up its prices. • The relationship between inflation and gold prices is well-established, with lower inflation rates typically leading to higher gold prices. • This is because gold is often seen as a hedge against inflation, as its value tends to increase when inflation rises.

Market Trends and Sentiment

The recent surge in gold prices has been accompanied by a significant increase in the inflows into gold exchange-traded funds (ETFs). This trend is indicative of a shift in investor sentiment, with many individuals and institutions opting to diversify their portfolios by investing in gold. • The gold ETF market has seen a substantial increase in inflows over the past year, with some funds reporting a 50% or more increase in their holdings. • This trend is not limited to individual investors; institutional investors, such as pension funds and endowments, are also investing heavily in gold ETFs.