Gold Prices Surge Near $4,000 Amid Rate Cut Hopes, Impacting Global Markets

Gold prices have reached record highs globally, buoyed by expectations of further interest rate cuts and geopolitical uncertainties, which have increased demand for the safe-haven metal. In the U.S., spot gold prices hovered around $3,723 per ounce, showing a significant increase over the past year, while analysts forecast gold could surge to $4,000 by 2026 and potentially reach $5,000 if demand continues. Similarly, in India, gold prices hit new highs with 24-carat gold reaching Rs 1,12,730 per 10 grams and forecasts suggesting a possible rise to nearly Rs 2 lakh per 10 grams, representing a potential 77% increase driven by historical valuation comparisons. Central banks, including those in Uzbekistan, have also responded to rising gold prices by adjusting sale prices, with Uzbekistan’s Central Bank raising prices for gold bars and noting increased sales volumes. Gold remains a preferred investment during economic uncertainty due to its role as a store of value, despite stocks generally offering higher long-term returns during strong economic periods. Overall, gold's attractiveness is strengthened by low interest rates, a weaker U.S. dollar, and sustained central bank buying, making it a critical asset amid volatile market conditions.