What factors caused the gold price to hit a record high?

Prior to this, the highest price of gold was in September 2023, when gold was around US$1,920. The current price of gold has reached a record high of $1,954.8. The rise in gold prices is because investors are trading gold at a relatively high price, which means investors remain optimistic about the trend of gold. After the price of gold rises, it is often accompanied by investors' expectations for market inflation.

In 2023, due to the impact of the epidemic, the global economy has been hit more or less. Many countries have introduced monetary easing policies, and some countries have lowered deposit interest rates, which means that money is deposited in banks. The interest rates are very low, some even less than 1%, which has led people in these countries to start looking for other new methods of asset preservation, which is gold. Therefore, the price of gold began to rise, and factors such as the spread and recurrence of the epidemic, the rise in geopolitical risks, and the weakness of the U.S. dollar were all major factors leading to the rise in gold. Moreover, due to the impact of the epidemic, gold production has also been affected to a certain extent, which has also aggravated the shortage of gold itself, which has further led to an increase in gold prices.

Although the development of a vaccine for the new coronavirus epidemic is accelerating, it will still take some time from the production to use of the vaccine.

There are still many gold investment varieties, such as physical gold, paper gold, gold funds, gold T+D, gold futures and so on. For us ordinary people, gold T+D and gold futures are relatively risky, and physical gold is difficult to store and is generally stored in bank safes. So for us, gold funds are relatively less risky, and you can buy them if necessary. But the current price of gold is already very high. We cannot predict what kind of development it will have in the future. There is no need to buy too much gold. No matter what you buy, there are risks.

The direct reason why the price of gold rises is that funds continue to enter the market, causing the price to continue to rise.

International relations are currently tense, and gold as a safe haven has become the choice of many people. Moreover, gold has been adjusted for a long time and has the conditions to rise.

Because the current international situation is becoming more and more chaotic, and the value of gold is very high, it is an international hard currency.