Gold up 45% in a year: why is everyone buying gold?

Gold has been one of the most popular commodities in the world recently, due to its dramatic profits. This is due to mass purchasing for several reasons. An essential reason is how confident

People are in gold in times of uncertainty. Because of the controversy that the trump administration has faced, rising inflation, and uncertainty in the employment market, many Americans are shifting away from traditional investments like the S&P 500. Gold hedges against inflation and retains its purchasing power, allaying investors' fears. Jerome Powell's perceived disregard for the problem of inflation and focus on unemployment has led to mass purchasing of gold as Americans try to avert possible inflationary risks and try to keep their savings from being affected. Another important contributor to the increase in investment in gold is the bankruptcy of the Russian Federal Reserve caused by the freezing of foreign Russian funds by the US and European Union as

retaliation for Russian involvement in the Ukraine war, This has frightened many other international federal reserves into holding a majority of their money in the US dollar, because of the US's ability to seize their funds. As a result, almost every international bank, including in countries like Brazil, Japan, and India, has started to start buying a large volume of gold every month. Because of the multitude of reasons and the almost vertical increase in recent months, consumer trader interest in gold has skyrocketed. This rise is not ensured. If the Trump Administration de-escalates tariffs and exits the trade war, or if a peace deal is found in the Ukraine war, causing Russia to get its reserves back, a price decline could occur. But if steep geopolitical circumstances persist internationally, gold has the possibility to continue its rally.