Gold (GC=F) prices surged above $2,500 an ounce for the first time on Friday 16th, 2024. Andrew Critchlow, global head of news at S&P Global Commodity Insights, told Yahoo Finance that there are three pillars influencing gold prices: high inflation, India’s market, and geopolitical risks.
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“Despite inflation easing in the US, Gold is the ultimate hedge against those inflationary risks,” Critchlow said. “We’re now starting to see [inflation] abate in the US, but we’ve still got pockets of inflation and cost of living issues around the world. Gold is going to continue to be a hedge to that.”
In regards to India, Critchlow cited the country as “a massive consumer of gold globally.” He added that India’s rapid economic growth will continue to drive “the fundamentals of demand for gold prices” moving forward.
Finally, “gold is a hedge” against geopolitical risks, according to Critchlow. That includes risks surrounding elections, trade issues, and global policy changes, as investors often flock to the commodity amid heightened political uncertainty.
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