Singapore: Gold prices climbed to a new all time high on Tuesday, crossing the 5200 dollar mark an ounce, as the US dollar fell to its lowest level in about four years. The rally reflects strong demand from investors looking for safety in a time of economic and political uncertainty.
Spot gold rose close to 5280 dollars during Asian trading, extending gains made earlier in the week. Analysts say the main driver is the sharp fall in the dollar, which makes gold cheaper for buyers using other currencies and increases global demand.
Market confidence in the US currency has been shaken by concerns over government policy and the future path of interest rates. Investors are also worried about slowing growth and rising risks in global markets. These factors have pushed more money into gold, which is seen as a store of value during uncertain times.
Central banks have continued to buy gold as part of their reserve strategy, adding further support to prices. At the same time, expectations that the US Federal Reserve may avoid raising interest rates soon have made non interest bearing assets like gold more attractive.
Other precious metals have also benefited from the trend. Silver, platinum and palladium moved higher as investors increased their exposure to commodities. In the Middle East and Asia, local gold prices touched record levels due to the global surge and weaker local currencies.
Some market experts now believe gold could move closer to 6000 dollars an ounce if the dollar remains under pressure and global risks persist. However, they also warn that prices may fluctuate sharply if economic data improves or if the dollar stages a recovery.
For now, gold remains one of the strongest performing assets of the year, supported by a weak dollar, steady central bank buying and rising demand for safe investments.