The recent surge in gold prices to record highs reflects deep-seated global concerns about economic stability, inflation, and geopolitical tensions. This trend highlights several key factors driving the gold market. Central banks, particularly those of China, Russia, and other countries seeking to reduce reliance on the US dollar, have significantly increased their gold purchases. This diversification strategy aims to hedge against economic uncertainties and potential sanctions.Investors anticipate potential Federal Reserve interest rate cuts later this year, making gold more attractive compared to income-generating assets like bonds. The expectation of rate cuts is a primary driver of bullish sentiment towards gold. Despite moderating inflation in some regions, persistent worries about future price increases continue to support gold prices. Gold is traditionally viewed as a hedge against inflation, maintaining its value during periods of rising prices.