Gold reached a new record level just below 2800 dollars per ounce on Wednesday, specifically at the levels of 2789.50 dollars, and the precious metal continues to outperform the rising stock market this year, but investors should be a little cautious.
Strong demand from global central banks, especially in emerging markets looking to reduce their dependence on the US dollar, has given a new impetus to gold this year.
So did Election fears, interest rate cuts by the Fed and geopolitical tensions in the Middle East.
All these factors led to this rise and strong momentum in the gold market.
But the interesting thing about the recent gold rally for gold is that it happened even though the dollar has strengthened recently, and long-term bond yields have also risen, despite the significant interest rate cut by the Fed last month.
Gold's recent rally has been very orderly, which probably means that gold still has a lot of room to move, but there is also an increased risk that gold investors will become over-excited.
In the end, it seems that the rise of gold is not over yet, but be careful when investing in any asset that has recently experienced continuous non-stop highs.
