Gold rose to its highest point since January — $1,915.01 — before easing back below $1,900. Even struggling at that mark, the metal was up 12.8% in two months from its March low of $1,684. Why — and does it continue?
Inflation and a weaker dollar
Gold has always been a hedge against inflation and a softening dollar: as the dollar’s value slips, the dollars needed to buy gold rise. History repeats this pattern reliably — and some argued the real inflation numbers ran higher than reported. If inflation keeps rising, gold tends to follow.
Treasury yields lose their shine
U.S. Treasuries are often called the world’s safest investment — but the 10-year yield fell to 1.593%, dulling their appeal. With just 226,000 April jobs created against the million analysts expected, the Fed had little reason to lift rates, leaving real interest rates negative — a classic tailwind for gold.
The takeaway: negative real rates mean cash quietly loses value while gold holds it — the exact condition in which gold historically outperforms.
Rising markets lift offers too — get a live price for your gold while conditions favour sellers.
