Gold continues to set historical records in response to the decline of the US dollar and expectations of interest rate cuts in the country. On Tuesday, the spot price of gold rose to a maximum level of $3,527.50 per ounce. Experts note that in the coming months, prices may fluctuate between $3,600 and $3,900, and in the presence of high geopolitical and economic uncertainty, the price could exceed $4,000 as early as 2026.
This is reported by Finway
Dollar Weakness and Rising Demand for Gold
Since the beginning of the year, the US dollar has depreciated by approximately 11%. This has made gold more attractive to investors from other countries, significantly increasing demand for the precious metal. Analysts point out that a weak dollar, expectations of changes in the Fed’s policy, investors distancing themselves from US assets, and economic uncertainty related to tariffs create favorable conditions for further increases in the price of gold.
“A bearish forecast for the dollar, supported by expectations of Fed cuts, investors distancing themselves from US assets, and economic uncertainty related to tariffs, is favorable for gold,” said Ricardo Evangelista, senior analyst at ActivTrades.
Political Risks and the Role of Central Banks
Another factor driving demand for gold has been the political risks in the US. The active rhetoric of Donald Trump regarding Fed Chair Jerome Powell and attempts to remove Governor Lisa Cook have raised new concerns about the independence of the Federal Reserve System. This pushes investors to buy gold as a “safe haven” in case of dollar instability.
Central banks around the world are also making a significant contribution to the rise in prices. The People’s Bank of China has been increasing its gold reserves for nine consecutive months. According to the World Gold Council, in the next five years, most central banks plan to increase the share of gold in their reserves while gradually reducing the volume of dollar assets.
Significant investments are also being observed from investment funds — gold ETFs are showing a noticeable influx of capital. Ukrainians are also increasingly investing in banking precious metals: gold, silver, platinum, and palladium. Their value is rising both in the national currency and in dollar equivalents.