In the global economy full of uncertainties, especially with the tension in the Middle East and the rising expectations of interest rate cuts, gold has once again become a hot safe-haven asset in the eyes of investors.
Expectations of interest rate cuts are driving gold demand.
Major global economies, especially the USA, are facing a slowdown in economic growth and the possibility of future interest rate cuts. Rate cuts mean currency depreciation and rising inflation. Gold, as a safe-haven asset, is highly favored for its value preservation. With lower interest rates, the opportunity cost of holding gold decreases, leading investors to turn to gold and other value-preserving assets.
Escalating turmoil in the Middle East intensifies risk aversion sentiment.
The situation in the Middle East has once again become tense, with conflicts escalating between Israel and Iran, leading to a rise in global geopolitical risks. History has shown that wars and conflicts often drive an increase in safe-haven demand, making gold a global investor's 'safe haven.' As a crucial region for global energy supply, the Middle East's instability directly affects the economic environment, increasing the demand for and value of gold.
Are you ready to seize the opportunity in this wave of rising gold market?