While stock markets in the US, UK, and Germany have been grabbing headlines, gold has quietly been on a tear—hitting a new all-time high of $2,942 per ounce on 11 February. That’s a 44% surge in the past year, outpacing even the combined valuation increase of the ‘Magnificent Seven’ tech stocks.
Even after factoring in buybacks and dividends, gold has outperformed the top tech giants. So what’s behind the rally? A mix of central bank buying, economic uncertainty, and persistent inflation concerns has driven demand. Many investors see gold as a safe haven, especially as global markets remain volatile.
For investors, gold’s strength has been reflected in rising prices for gold ETFs and mining stocks, making it an attractive hedge against market downturns. While some argue that gold doesn’t generate income like stocks, its ability to preserve wealth in uncertain times keeps it in demand.
With inflation still a factor and interest rate cuts expected later this year, gold could remain strong. The question is: will this rally continue, or is gold peaking?
Disclaimer
Not financial or tax advice. No content produced by Pluto is financial, accounting, legal or tax advice. Our content is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This article is not tax advice. Talk to your accountant. Do your own research. The performance of most cryptoassets can be highly volatile, with their value dropping as quickly as it can rise. You should be prepared to lose all the money you invest in cryptoassets.
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