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Below the Perspective by Ms. Riya Singh - Research Analyst, Commodities and Currency , Emkay Global Financial Services

Gold has soared past $3,500/oz, marking record highs as mounting concerns over U.S. political instability and waning monetary policy credibility drive investors toward safe-haven assets. A weakening dollar, intensifying trade tensions, and speculation surrounding potential changes in Federal Reserve leadership have severely dented market confidence. The metal’s over 30% year-to-date rally underscores diminishing trust in the U.S. economy and recent tariff measures, amplifying overall uncertainty. Robust central bank buying and steady ETF inflows point to long-term structural demand, extending beyond temporary risk aversion. Although technical signals suggest overbought conditions, the prevailing macro backdrop—characterized by fiscal vulnerabilities, geopolitical strain, and perceived threats to the Fed’s autonomy—continues to support gold’s upward momentum. With the U.S. dollar losing ground in recent weeks, gold has reasserted itself as the true safe-haven asset”.

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