Gold Prices Rally to Fresh High on Safe-Haven Demand

Gold prices have surged to a fresh high of $2,850 per ounce on June 10, driven by escalating safe-haven demand amid global economic uncertainty and shifting monetary policy expectations.

The rally is underpinned by a combination of geopolitical tensions, persistent inflation concerns, and growing expectations of central bank rate cuts. Investors are increasingly turning to gold as a store of value, particularly as equity markets show volatility and bond yields remain unpredictable.

Central banks have been net buyers of gold for over a decade, diversifying reserves away from the US dollar. According to the World Gold Council, central banks purchased 1,137 tonnes of gold in 2024, marking the third consecutive year of purchases above 1,000 tonnes.