Year: 2024
Type: article
Abstract: Gold has long been regarded as a traditional safe haven asset, especially during economic uncertainty and geopolitical unrest. This study examines the complex interplay between traditional supply-demand dynamics, macroeconomic conditions, monetary policies, and market sentiment. Factors such as limited gold mine production and rising production costs, while central banks have increasingly turned to gold as a reserve asset, has driven prices upward even further. Additionally, geopolitical risks, inflation expectations, and Fluctuations in the US dollar, often inversely correlated with gold prices, have added to market volatility. The widespread use of financial instruments like gold ETFs and futures has also contributed to price fluctuations. As the global economy recovers, adjustments in monetary policy and ongoing geopolitical tensions will play a critical role in shaping the future direction of gold prices. This analysis offers valuable insights for investors and policymakers while suggesting future research scope to further understand the gold market's complexities.
Author: Chenning Zhang
Institution: University of Manchester
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4405821168