Why gold prices are soaring

Over the past year, the price of gold has risen by almost 50%, and over the past 5 years, it has appreciated by around 100%. Investors in gold have made money. Profits attract media attention. Recently, everyone seems to have caught the gold bug. Why?

Gold is a store of value. Its daily price movement is driven by global demand from individuals, institutions, and central banks. It is a hedge against risk, both political risk and inflation risk. Gold is also a diversification asset. That matters because we live in a time of political and economic uncertainty. This uncertainty causes demand for gold to rise.