Gold is flying right now. Prices of the precious metal have soared to record highs due to expectations of interest rate cuts and geopolitical tensions around the ongoing wars in Ukraine and Gaza. After the U.S. Federal Reserve left rates unchanged and penciled in three rate cuts this year, gold prices soared as high as $2,222.39 per ounce — a new record high — on Thursday. The asset has since pared gains to last trade at levels around $2,208.
That means it's unlikely to be a situation where debt gets lower. At some point, the U.S. dollar is going to come under pressure, he said. When the government accumulates higher debt, it may print more money or increase spending, potentially driving up inflation — in this situation investors may turn to gold as a hedge against higher prices.