Gold prices surged to over $4,050 (£3,029) per ounce this week, which could be attributed to the ongoing government shutdown, an emerging dollar debasement trend, expectations of lower interest rates, and central banks in Asia and the Middle East piling into the precious metal to hedge against inflation and currency volatility.
Gold is a time-tested tangible asset that appreciates in value over time due to its limited supply, universal demand, high exchangeability, and negative correlation to stock markets. Investors buy gold to overcome inflationary effects and the devaluation of fiat currencies like the US dollar.
