🏦 Central banks such as those in Mexico, Mongolia, and the Czech Republic are increasing their gold reserves. Amid geopolitical instability and declining interest rates, gold is becoming a safe-haven asset, providing protection against global economic volatility.

💰 Gold prices have surged over 25% in 2024, driven by strong demand from central banks. Gold is not only viewed as a store of value but also as a safeguard against the weakening USD and major countries’ loose monetary policies. The price of gold is expected to continue its upward trend as investors seek safe assets.

📉 Fed Interest Rates According to CME’s forecast tool, the market sees an 87.7% chance that the Fed will cut interest rates by 25 basis points (bps) in November. By December, the probability of a total 50 bps cut by the Fed is 79.1%. This could further impact the USD and support gold prices.

Fed Caution: Fed Governor Christopher Waller has warned that rate cuts need to be approached with caution, as inflation in the U.S. is rising again, and the U.S. economy remains stronger than expected. However, if economic conditions remain stable, the Fed may begin gradually lowering rates in 2024, with a total reduction of up to 1.5% by the end of 2025.

⚡ Geopolitical Tensions Economic competition between the East and the West is also driving the demand for gold as a diversification tool. Gold is increasingly favored as a safe asset amid rising international risks.