Gold glitters when uncertainty rises — but high interest rates can dim its shine.
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00:00You've probably noticed that gold prices have been on a bit of a rollercoaster lately, hitting some record highs, then dipping slightly.
00:07So what is going on?
00:09Well, in very simple terms, gold is a safe haven.
00:11And when people worry about stuff like inflation, wars, the economy, they buy gold.
00:17After all, it's been a trusted store of value for thousands and thousands of years.
00:21That's exactly what we've been seeing recently.
00:23You've got geopolitical tensions, economic jitters, and that's pushing people towards gold, sending the prices upwards.
00:29There is a flip side, though.
00:31When interest rates are high, gold looks a bit less attractive because it doesn't pay you anything to hold it.
00:36And that's probably why we see the occasional dip.
00:39Bottom line, gold tends to shine when the world feels like an uncertain place.
00:44But when things are calmer, investors might look at the yellow metal as being a bit of a missed opportunity.