Gold Price @ All time high
- Gold hits $4000 per ounce with 52% gain in 2025.
- In India, Gold maintained the all time high due to Rupee depreciation, global momentum, strong demand.
- HSBC is bullish on Gold and expects a price above $4000 USD
- Goldman and Bank of America are cautioning that Gold is at overbought territory and can invite profit booking and corrections.
What makes gold to shine?
1. Global uncertainty - Tariff problems and trade war makes people and countries to fear the future economic conditions and Gold always plays hedge against uncertainties.
2. Currency Depreciation - Lack of free money flow between countries due to trade war weakens the currency, that makes gold a hedge against currency depreciation.
3. Momentum - Continuous growth in gold price make many investors to chase gold short term. Report says - investors increased their holdings of gold from 10% to 30% on average in their portfolio.
4. Rate cut expectations - A prolonged delay of rate cut also pushing the gold price higher.
5. Hedge against weaker Equity Returns cycle - Commonly gold treated as hedge against the weaker equity cycle. Especially in recession period.
