Gold Prices Hit Record Highs

A Historical Comparison and Insights on Economic Trends

Price of Gold has surged to an all-time-high, pushed by the expected decision of lowering interest rates by the FED and an appetite for safe-haven assets.

On Friday both Gold futures and spot prices broke the record as central banks seem to be committed to cut rates for the remainder of this year.

Spot Gold price exceeded $2,500 (€2,264) and futures went above $2,540 on the last trading day. Excitement continues into this week’s Monday session.

Futures have risen by 5% over the past 3 months and an unprecedented 22% year-to-date. Meanwhile growth-driven commodities like copper have dropped significantly. This divergence suggests investors are fearful over slowing global manufacturing and economics, they therefore are flocking to safe-haven assets.

Interesting comparison

• Did you know that more steel is poured in an hour than the total amount Gold that has been mined in all of history?
• The world produces as much copper in a year as the total Gold ever mined.

Macroeconomic forces and escalating geopolitical tension drives this surge. Central Banks will probably ease monetary policies due to slowing economic growth. Gold inversely correlates with USD. Rate cuts weakens USD. You do