Global events significantly influence gold prices, affecting investment decisions. Key factors include:

• Economic instability – During financial crises, gold prices often rise as investors seek safe-haven assets.
• Inflation rates – High inflation can drive gold demand, as it retains value better than fiat currencies.
• Geopolitical tensions – Conflicts and political uncertainty boost gold prices due to increased investor caution.
• Currency fluctuations – A weak US dollar typically leads to higher gold prices as it becomes cheaper for foreign investors.
• Interest rates – Lower interest rates can increase gold's appeal as the opportunity cost of holding non-yielding assets decreases.

Understanding these influences helps investors anticipate market shifts and make strategic decisions when investing in gold.

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