Gold is seen as a safe-haven asset during times of economic uncertainty. When the stock market is volatile or there is political instability, investors often turn to gold as a way to protect their wealth.

Gold is often used as a hedge against inflation. When inflation rises, the value of paper currency decreases, but the value of gold tends to rise. This makes gold an attractive investment for those looking to protect their purchasing power.

Central banks around the world have been buying gold in recent years, which has helped to drive up the price. These banks see gold as a way to diversify their reserves and reduce their exposure to the US dollar.

Low interest rates make it less attractive to hold cash or bonds, which has led some investors to turn to gold as an alternative investment. With interest rates expected to remain low for the foreseeable future, gold may continue to be an attractive option for investors.

As emerging markets continue to grow and develop, there is increasing demand for gold for both jewelry and investment purposes. This has helped to drive up the price of gold in recent years.