The gold market is seeing renewed strength, with prices edging closer to historic peaks. This climb comes at a time when the balance of macro signals is tilting in gold’s favour. Softer economic data in key markets is fuelling speculation that monetary policy may ease sooner than previously expected. Lower interest rates reduce the opportunity cost of holding gold, making it more attractive in relative terms, especially as yields on other assets adjust downward.
A weaker US dollar is adding another layer of support. As the currency retreats from recent highs, gold becomes more affordable for international buyers, which has contributed to fresh demand in both institutional and retail segments.
At the same time, geopolitical tensions are returning to the foreground. Developments in regions with energy and strategic importance are again prompting investors to reassess their exposure to risk. While such moments often lead to short bursts of safe-haven flows, this period feels different. There is a growing sense that the geopolitical backdrop may remain unstable for longer, leading to more sustained interest in assets seen as stores of value.
Great Western Mining Corporation Plc (LON:GWMO) is a mineral exploration and development company, incorporated in Ireland with operations in the USA.
