Gold prices surged past $5,200 per ounce to a new all-time high, driven by strong safe-haven demand as investors reacted to rising global uncertainty.
The rally marks one of the strongest periods for the precious metal in recent years.
Safe-Haven Demand Drives Rally
Investors increasingly turned to gold amid concerns over geopolitical tensions, slowing economic growth, and volatile financial markets.
Moreover, expectations of looser monetary policy in major economies further supported the surge in prices.
Weak Dollar, Lower Yields Boost Gold
Analysts say a weaker US dollar and declining bond yields have made gold more attractive. Since gold does not offer interest, lower yields tend to increase its appeal.
In addition, central bank buying has remained strong, adding further support to the market.
Impact on Global Markets
The sharp rise in gold prices has lifted shares of mining companies while also prompting renewed interest in precious metal-backed investments.
At the same time, some investors are reassessing risk exposure across equities and currencies.
Outlook Remains Bullish
Market experts believe gold could remain elevated if global uncertainty persists. However, they caution that short-term volatility may continue as investors react to economic data and policy signals.
Overall, gold’s move above $5,200 underscores its enduring role as a store of value during uncertain times.
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