Bullion bonanza: why is gold hitting record highs?

Group 1: Gold Market Overview - Gold is experiencing its best year since 1979, with record highs in 2025, driven by various economic and geopolitical factors [1][6] - The spot price of gold has surged by 45% since January, reaching a record high of $3,190 per ounce [6] - Inflows into gold have been significant, with $5.6 billion in a single week and record inflows of $17.6 billion over the past four weeks [6] Group 2: Demand Drivers - Gold is seen as a safe haven and store of value amid fears of economic slowdown and geopolitical tensions, particularly between Russia and NATO [2] - Concerns regarding U.S. economic policies, including interest rates and trade wars, are contributing to the rising demand for gold [3][10] - Central banks, especially in China, are increasing their gold reserves to reduce dependence on the U.S. dollar and strengthen their position in the global market [11] Group 3: Comparisons with Other Precious Metals - Gold's scarcity and its role as a store of value differentiate it from other precious metals like copper, platinum, and palladium, which are consumed in large quantities [4][5] - The World Gold Council notes that total gold supplies are increasing at an estimated rate of 1.7% per year, reinforcing its value proposition [4] Group 4: Market Sentiment and Future Outlook - Analysts suggest that gold is currently "overbought" but "under owned," indicating potential for further price increases [7] - Deutsche Bank has raised its gold price forecast for 2026 to $4,000 per ounce, reflecting bullish sentiment in the market [14] - The weakening U.S. dollar, down over 9% in 2025, is mechanically lifting gold's value in dollar terms [13]