Gold surged to a record high above $2,600 per ounce on Friday, driven by expectations of U.S. interest rate cuts and global geopolitical uncertainties. With a 26% increase this year, market bulls are eyeing the next milestone of $3,000 per ounce.
There are several ways to invest in gold:
Spot Market: Large buyers and institutional investors purchase gold directly from major banks. The spot market price is determined by real-time supply and demand, with London as the key trading hub due to the influence of the London Bullion Market Association (LBMA). Other major centers include China, India, the Middle East, and the U.S.
Futures Market: Investors can buy or sell gold at a predetermined future date through futures exchanges like COMEX in the U.S., the Shanghai Futures Exchange in China, and TOCOM in Japan.
Exchange Traded Products (ETPs): These products, such as Exchange Traded Funds (ETFs), allow investors to gain exposure to gold prices without physically holding the metal. Global gold ETFs have seen continuous inflows, reflecting strong demand for this investment avenue.
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