KEY POINTS
- Gold prices continue to climb, with industry experts forecasting a 10% increase.
- Rising demand and economic uncertainty are driving the upward momentum.
- Investors are turning to gold as a safe haven amid global market volatility.
Gold prices are on the rise again and industry analysts are expecting further increase of about 10 percent in the next one or two months. The metal that investors turn to during times of economic turmoil is enjoying the continuous upward trend as global markets remain unpredictable.
People are running to gold as they look for safe haven due to inflation, political unrest, and unpredictable stock markets.
Global volatility boosts gold’s recovery
The continuous increase in the prices of gold can be blamed on the rising demand sparked by economic situations all over the globe.
Governments have been increasing interest rates due to persistent inflation and this has exerted pressure on central economies. This environment has also made the yellow metal – an element known to hold value for centuries – the best bet to hedge against fluctuations in currencies and volatility in the market.
The price of gold as has been sourced from the industry has constantly been on the rise for the past several months due to some factors including increased apprehensions of geo-political risks and a possible world recession.
As the market condition remains volatile, analysts expect this trend to persist, and gold prices to soar even further.
Investors look for safe havens as market fluctuations increase
Gold’s recent performance is evident of its stability during the periods of financial stress. As equity markets go through their cyclical downturns and cryptocurrencies fail to hold their value, more and more investors are turning to safer investments such as gold.
The market experts believe that gold could go up by as much as 10 percent due to the rising interest from institutional as well as individual investors. Several industry luminaries interviewed by Mining.com continue to remain bullish on gold due to sound fundamentals and macro drivers.
High demands from central banks and emerging markets
Other fundamental reasons that are still driving gold are central banks’ and emerging markets’ continued to buy the precious metal.
Many central banks especially those in the developing world have been raising their gold holdings as a way of diversifying from the greenback. This trend has also supported the gold market and thus increases the price of gold in the market.
Besides, the price has received a boost by the increased demand from jewelry markets with Asia, especially China and India.
With the economic recovery from the effects of the pandemic in these countries, there are expectations that the demand for gold will increase even further as a result translating to further push forward of the gold prices.
A promising outlook for gold
While gold’s price trajectory is influenced by a range of economic factors, the consensus among industry experts is clear: The precious metal is expected to continue its upward movement.
While uncertainty and fluctuation will continue to rise across the financial markets and inflation concerns will form the basis of many worldwide business and investment plans, it is easy to predict that gold will remain one of the most sought-after commodities.
In the future, gold has a tendency to keep on growing due to other demand drivers, purchase by central banks and uncertainty in global economies.
If this is the trend for the future then the projected 10% rise could come through making gold a staple in investment portfolios all over the world.
