Gold has hit another market record despite price volatility

This week, gold once again proved its attractiveness to investors, setting a new record on the world market. Since the beginning of the year, it has increased in price by 35%, which analysts attribute to the growing political and economic instability. The events unfolding worldwide are creating significant demand for the precious metal, while the dollar index remained virtually unchanged, holding the level at 104.363.

The escalating geopolitical conflicts were also the reason for gold's growth. Thus, the conflict between Russia and Ukraine is intensifying amid North Korea's support for the Russian Federation, and the situation in the Middle East remains tense after the ban on the Palestinian UN agency in Israel. These developments are widening the anxious sentiment in the market, prompting investors to look for more reliable assets.

Experts are eagerly looking for data on the Personal Consumption Expenditure (PCE) index, which will be available next week. The US Federal Reserve is expected to soften its monetary policy, which, analysts believe, will increase the attractiveness of gold as an instrument for capital preservation. Investors are counting on lower interest rates, which may support the gold market.

The fall in the value of gold amid a weak US employment report added volatility to the market. Despite expected employment growth, the October report showed only 12 thousand new jobs due to the impact of recent strikes and natural disasters. This data exacerbates investor fears and creates uncertainty about the Fed's future actions.

In the long term, gold may remain in favour with investors due to factors such as growing political instability, gold purchases by central banks and the upcoming US presidential election. Given the ongoing risks, experts believe that gold will aim for new record highs by the end of the year.