Gold prices have reached a historic high. What is influencing this?

Gold prices have risen to record levels amid expectations of lower interest rates in the US and escalating geopolitical tensions around the world, Bloomberg reports.

The price of gold jumped more than 1.5% and exceeded the previous record of $4,381 per ounce, which was set in October. As of today, the spot price of gold has reached $4,404 per ounce.

The global market is reacting to expectations that the US Federal Reserve may cut rates twice in 2026. These forecasts have intensified following a slowdown in employment growth and lower-than-expected inflation in the US.

The market was also affected by escalating geopolitical tensions. The US tightened its oil blockade on Venezuela. At the same time, Ukraine attacked an oil tanker from Russia’s shadow fleet in the Mediterranean Sea for the first time. This increased demand for gold and silver.

According to Bloomberg, additional pressure is being created by statements from US President Donald Trump, who advocates a softer monetary policy. Lower interest rates usually support prices for precious metals, which do not generate interest income.

Analysts note that investors who are exiting government bonds and currencies amid fears of asset depreciation due to rising government debt are playing an important role in the price increase.

Experts predict that the growth may continue in 2026. In particular, Goldman Sachs expects a base price of $4,900 per ounce and does not rule out an even greater price increase.

Recall that in October 2025, gold prices fell sharply for the first time in five years. At that time, investors turned away from America due to Donald Trump’s presidency and the Republican tax bill.

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