Gold Hits Record Highs!

💰 Gold Hits Record Highs: $3,500 per Ounce

Over the past year, gold has shown an impressive gain of nearly 42%, making it one of the most successful investments amid global economic uncertainty. The price of gold on world markets has surpassed $3,500 per ounce, setting a historic record.

Experts attribute the sharp rise in the precious metal to expectations of interest rate cuts by the U.S. Federal Reserve and growing concerns about the future policy of the U.S. central bank, according to Bloomberg.

Investors worldwide are turning their attention back to the “yellow metal” as a safe-haven asset. The main reasons for the renewed demand include:

geopolitical tensions,

trade disputes between the U.S. and other countries,

inflation expectations driving demand for safe assets.

Analysts note that gold may reach new highs in the coming quarters, as interest from institutional and private investors continues to grow. Additional support comes from the weakening U.S. dollar and inflows into gold-backed ETFs, making gold attractive for long-term capital preservation and portfolio insurance.

Silver is not far behind, having risen over 40% since the beginning of the year, surpassing $40 per ounce for the first time since 2011. Key growth drivers include:

Основными драйверами роста выступают:

• supply shortages on the silver market,
• increasing demand for the metal in clean energy projects, including solar panels and energy storage batteries.

Thus, both gold and silver continue to show strong fundamental growth, supported by a combination of macroeconomic factors and technological demand.

Gold ETFs: Growth Confirmed by Volume

Funds backed by gold, such as SPDR Gold Shares (GLD) and iShares Gold Trust (IAU), recently broke their buy zones amid rising trading volumes.

• This indicates that the upward trend may continue, as large institutional investors actively increase positions.
  
  
• Gold ETFs are convenient for long-term investing and portfolio protection, offering liquidity, transparency, and diversification without the need for physical storage of the metal.

Gold Mining Stocks: Leaders

As the price of gold rises, interest is increasing in the stocks of companies engaged in the mining and processing of the metal.

• Alamos Gold (AGI) – broke out of a “cup without handle” pattern, signaling potential further growth.

• Newmont (NEM) – reached record levels since April 2022.

• McEwen (MUX) – +18%, breakout from a five-week pattern, confirming an upward trend.

It’s important to remember that mining stocks are more volatile than the metal itself, as they are affected by company performance, extraction costs, taxes, and regulations. Nonetheless, with rising gold prices, these stocks can provide substantial returns.

Fundamental Reasons for Gold’s Rise

1. Weak U.S. dollar – gold is traded in dollars and rises when the currency weakens.
2. Central bank demand – countries continue to replenish reserves, including gold, for diversification and economic protection.
3. Geopolitical instability – conflicts, sanctions, and trade disputes boost demand for safe-haven assets.
4. Institutional investor interest – funds, insurance companies, and pension funds increase gold holdings to reduce risks.

All these factors create a long-term fundamental trend, distinct from short-term speculative spikes.

Investor Takeaways

• Gold via ETFs – optimal for long-term investment and portfolio protection.
• Mining stocks – higher growth potential but with increased risk and volatility.
• Avoid aggressive positions – current growth is supported by real fundamentals, so diversification and a strategic approach are key.

🌍 Overall, the gold market shows a strong and sustainable upward trend, which could continue given global economic and geopolitical conditions. For conservative investors, it also offers an opportunity to protect capital amid high inflation and market uncertainty.