Gold Market Surges to Record High Despite US Bond Yields

The gold market has experienced a sudden surge, with bullion rising 14% since early March, prompting speculation about the driving forces behind this unprecedented rally. Analysts and industry insiders offer various theories, including central bank concerns about the dollar, anticipation of Federal Reserve rate cuts, algorithmic trading, inflation fears, and geopolitical uncertainty. Despite increased transparency in the market, the surge remains enigmatic, with strong demand for physical gold, rising trading activity in futures and over-the-counter markets, and concentrated buying after key US economic data releases. The surge in gold prices is defying conventional expectations, with investors possibly seeking gold as a haven amid concerns about a potential hard landing in the US economy and geopolitical uncertainty.