3 reasons why gold's record-shattering hot streak is still going

Core Insights - The price of gold is experiencing a significant upward trend, reaching record highs, attracting interest from both institutional investors and everyday consumers [1] - The surge in gold prices is driven by three main macroeconomic factors, with the most recent being China's plans to become a custodian of foreign sovereign gold reserves [2][3] Group 1: Macro Drivers - China's New Plans: China aims to store gold bought by other countries, which could incentivize more government purchases of gold and establish China as a key player in the gold market [2][3] - Interest Rate Cuts: The Federal Reserve's recent decision to lower interest rates is a significant factor driving gold prices higher, as lower rates make bonds less attractive compared to gold [4][5] - Economic Turmoil: Gold continues to serve as a safe-haven asset during times of economic uncertainty, reinforcing its historical role as a stable investment [6] Group 2: Market Performance - Gold is having its best year since the 1970s, with returns increasing as the Federal Reserve initiates a new rate-cutting cycle [7]