What is behind the recent gold rally?

Shifting interest rates

Investors have been prompted reassess their investments in recent months, and many have chosen to bolster their portfolios with safe haven assets as the global economy comes to an inflection point in its fight against inflation.

While inflation is finally falling, recent forecasts released by the IMF show that global growth is expected to decrease from 3.4% in 2022 to just 2.8% in 2023, primarily due to the upward trend of interest rates since December 2021. Deep Dive: Not all gold has the same value for investors As such, with central banks now balancing elevated prices with low growth, there is a significant amount of volatility in the markets, which is encouraging investors to protect their portfolios with gold. Consequently, prices have skyrocketed by around 10% since 2022 and could reach new heights i...