Gold, one of the most highly regarded commodities and recession hedges, is experiencing an unprecedented investment boom, being on track for an all-time record inflow of $75 billion.
The growth is driven by a number of factors, including the still ongoing conflict in Ukraine, the trade wars, and the weakening of the US dollar, which is down 1.26% since last month.
Spot gold, on the other hand, was up 2.04%, trading at $3,353.29/oz during the first half of the European session today and $3,372.74 at the time of writing.
U.S. gold futures likewise rose 1.9%, trading at $3,378.40/oz.
Precious metal price gains
The growing demand for gold was palpable as far back as March when investors added 67.4 tons or $6.5 billion to gold exchange-traded funds (ETFs).
In the meanwhile, U.S.-China trade relations continued to worsen, with Treasury Secretary Scott Bessent announcing that President Trump would speak with Chinese President Xi Jinping regarding critical minerals.
Accordingly, investors are eagerly expecting potential policy signals, with Chair Jerome Powell scheduled to speak this week.
Should the bullish sentiment persist, the price target could lie in the $3400+ ballpark again, as it did at the beginning of May.
Other precious metals have also been surging, with silver, for example, rising 1% to $33.29/oz.
Featured image via Shutterstock
