Gold surged to an all-time high of $2,800 per ounce on Friday, driven by growing investor concerns over geopolitical and economic stability. The rally was sparked by U.S. President Donald Trump’s recent reiteration of tariff threats, reigniting fears of potential trade wars and an economic slowdown. As global markets braced for uncertainty, investors turned to gold as a safe-haven asset, pushing its price to record levels.

Central Banks Fuel Gold’s Momentum

The surge in gold prices was further amplified by the monetary policy decisions of major central banks. The European Central Bank (ECB) made a widely anticipated interest rate cut, signaling room for additional reductions in the future. Similarly, the Bank of Canada (BoC) reversed its stance on quantitative tightening, and the Swedish Riksbank followed suit with its own rate cuts earlier in the week. These moves pointed to a global shift toward looser monetary policies, fostering an environment of higher liquidity that supported gold’s climb.

Global Economic Indicators and U.S. Policy

As central banks signaled more accommodative policies, other regions followed suit. The People’s Bank of China (PBoC) and the Reserve Bank of India (RBI) both suggested more relaxed policies in the coming months. Meanwhile, U.S. interest rates remained unchanged, with no immediate hints of future moves. However, expectations for two potential rate cuts in the U.S. later this year continue to support the gold market.

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Gold’s Strong Monthly Performance

For the month, gold is poised to deliver its most significant monthly gain since March 2024, underscoring the growing demand for the precious metal. As uncertainty looms on the global economic horizon, gold continues to shine as a secure investment option for those seeking stability in volatile times.

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