Posted 4/12/2024, 5:42:28 PM
Gold Prices Soar to Record Highs as Investors Flock to Precious Metals Amid Economic Uncertainty
- Gold prices hit a record high, rising 17% so far this year, over twice as fast as the S&P 500
- Investors are seeking high-return assets in anticipation of interest rate cuts; a "momentum trade" is also driving prices up
- Retail investors are buying up gold bars at Costco, generating $100M-$200M per month in sales
- Central banks purchased large amounts of gold in January and February to move away from US dollars and hedge inflation
- While gold ETFs have seen net outflows, hedge funds and institutional investors are buying in to capitalize on the price rise
