Expectations that the Federal Reserve (The Fed) will cut interest rates have increased the appeal of gold, as yields on fixed-income assets (such as bonds) have become lower.

The US dollar has weakened, making dollar-priced gold cheaper for holders of other currencies, boosting demand.

Global geopolitical and economic uncertainty (e.g., conflict, trade, inflation) has driven investors to safe-haven assets like gold.

1. Expectations of an Interest Rate Cut by the Federal Reserve (Fed)

Economic data in the US has shown weakness (such as rising jobless claims, weakening manufacturing), which increases the likelihood that the Fed will begin cutting interest rates. Lower interest rates make non-yielding gold more attractive because the cost of "no yield" is relatively lower.

2. The US Dollar Weakens

As expectations of an interest rate cut and US bond yields decline, the dollar index (USD) has come under pressure. Because gold is priced in dollars, when the dollar weakens, it becomes cheaper for holders of other currencies, increasing demand.

3. Demand for "Safe Havens" Amid Geopolitical & Economic Uncertainty

Global uncertainty (e.g., geopolitical conflicts, trade tensions, recession risks) has led investors to seek refuge in assets like gold. This has contributed to price increases.

4. Central Bank Accumulation & Physical Demand

Several central banks, including those from developing countries, have increased gold purchases as part of reserve diversification. Strong physical demand also provides additional support for prices.

Source: Newsmaker.id