As of October 13, 2024, gold prices have surged above $2,650, marking a significant bullish movement in the precious metals market. Several factors are driving this rally, with inflation concerns and expectations of future Federal Reserve rate cuts playing pivotal roles in shaping market sentiment.
Inflation Concerns
Persistent inflation is one of the major reasons behind the rise in gold prices. While the Federal Reserve has worked to curb inflation through a series of interest rate hikes over the past year, inflationary pressures have not fully subsided. As a result, investors are turning to gold as a hedge against inflation. Traditionally, gold is seen as a safe-haven asset, which retains value during periods of economic uncertainty or rising inflation.
