Why does gold grow during this period?🪙
Why does "gold" raise prices? 📈
The rise in gold prices was caused by a combination of factors, mainly the following:
1️⃣ High inflation, so people ran away carrying gold. 🪙
When inflation is high, the value of money decreases, so many people turn to gold to maintain value, because gold is an asset that does not depreciate with inflation, so the demand for gold increases, and the price rises.
2️⃣ The global economy is uncertain.
When the global economy is at risk; e.g....
War 🔥
Economic crisis 🚨
Stock markets fluctuate 📈
Investors move money from risky assets to safe haven, causing gold prices to rise.
3️⃣ Central banks around the world buy more gold.
Over the years, many central banks increased their holdings of gold in reserves to diversify from the dollar, increasing market gold demand.
4️⃣ The dollar is weak.
Gold trading with dollars
If the dollar depreciates → people around the world buy gold has been cheaper. Demand increases → Gold prices rise.
5️⃣ Interest is starting to tend to reduce.
When Interest Is Low
The deposits have little return. 🥲
Investors then turned to holding more gold. 🪙
💡 Simple summary, the gold will go up when....
👉 high inflation.
👉 economy is uncertain.
👉 soft dollar.
👉 people want safe assets.




















































































































