This week, gold prices reached a record high, generating significant interest in the financial markets. In this article, we will explore how the current economic situation influences gold prices.
Gold Prices Reach Record
On Tuesday, the price of gold reached a record level of $3,650 per ounce, significantly exceeding its value at the beginning of the year. During this period, gold showed a growth of 37%, while Bitcoin, known as digital gold, increased by only 16%.
U.S. Economic Situation and Impact on Gold
The primary factor affecting gold prices is the policy of the Federal Reserve amid uncertainty. Considering the likely interest rate cuts in September, experts believe expectations may further contribute to rising gold prices.
Future of Gold: Sustainability of the Rally
The future prices of gold may depend on the Federal Reserve's reaction to economic data. If inflation unexpectedly rises and the Fed ignores it, gold prices may sharply increase. Conversely, if tightening policies are implemented, gold prices may slightly adjust.
Thus, the current situation in the gold market stems from complex interrelations between economic policy and investor expectations, making it not only a measure of wealth but also a hedge against inflation risks.
