Gold prices have surged by more than 12% so far this year, continuing to reach record highs as global uncertainty drives investors towards the precious metal.
According to Simon Popple, managing director at Brookville Capital, this rising demand for gold is largely fueled by increasing global instability. “We’ve lived in a world with much more certainty in the past, but today, that’s not the case,” Popple told.
One major factor contributing to the rising gold prices is the tariffs imposed by US President Donald Trump, which are expected to have inflationary effects. Additionally, investors are anxiously anticipating retaliatory actions from affected trading partners.
During periods of uncertainty, gold is often seen as a safe-haven asset due to its relatively stable value, even when other currencies decline. Although gold prices may experience short-term fluctuations, the metal has historically maintained strong purchasing power.
“I don’t think there’s a perfect hedge against inflation,” Popple noted, “But I would strongly advocate that people need to jump in and have some exposure, no matter how big or small.”
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