Comment: Gold hits record highs

Nikos Tzabouras, Senior Market Analyst at Tradu, commented:

“Gold reaches new all-time highs as US dollar weakness and geopolitical tensions reinforce the bullish outlook.

“Heightened Fed independence concerns and rate cut bets, amid broader de-dollarisation and debasement trends support bullion demand. The precious metal also benefits from safe haven flows amid escalating Iran protests and Trump weighing military options, as well as the US President’s rhetoric around acquiring Greenland.

“On the other hand, the bar is likely high for a military strike in more regions after the operation in Venezuela, which could contain risk-off demand. Moreover, the Fed may have a hard time cutting rates further, given persistent inflation and macroeconomic uncertainty.”