Why is the price of gold increasing?

[Fatosist]

What are the factors that cause this increase today?

Updates

10 mo

🙄

[Anonymous]

There’s a number of reasons. One being the possibility of a recession. People tend to purchase gold when they think a recession may be coming. Gold tends to hold value better than paper money. Inflation happens every year, I believe it’s 2-3% every year, so over time your paper money losses purchasing power. So if you could purchase 4 widgets in 2025 w $50, next year you may only be able to purchase 3 of those widgets for that same $50. Gold will usually keep pace w inflation or go over that inflation increase. Also when central banks purchase large amounts of gold as part of their reserves, that can cost the price of gold to go up. Also when interest rates lower it means a weaker dollar which means an increase for gold. There’s other reasons as well.

[ChicoFromThe305]

For the most part gold holds it's value, simply because of the labor and process to not just gather gold but eventually I can only imagine it gets harder to find as there's less and less of it to find and sell

[Nikki1989]

Global economic and political uncertainty.

[jamesgoldman]

Money printing, global debt, war and political instability
It's also Indian wedding season

[Fatosist]

there must be a specific event today, since the surge was abnormal. I guess it might be related to Trump’s pressure on the Fed and the news coming out of the Shanghai summit… but I couldn’t find a source that gives a clear explanation.

[jamesgoldman]

I mean Indian wedding season always bumps September but the other matters explain the exponential growth

[jamesgoldman]

Trump does well for gold, still recall his first term

[Fatosist]

and the war environment also feeds gold, but today's increase is really abnormal.

[jamesgoldman]

1% isn't too crazy for a day

Silver has done 20%-25% in 3 months that feels bigger than gold's 5%

[jamesgoldman]

Ah, that's done it
UK borrowing is now the most expensive in well my entire life (27 years)

[In_Trance]

Because people are willing to pay more for it

[jahaims]

Google it

[Fatosist]

everyone can Google everything instead asking here