Gold breaches $4,000 per oz as investors rush to safe-haven assets

The gold price has surged past $4,000 per ounce amid growing global uncertainty, driven by shifts in market sentiment and rising commodity price volatility. Investors are moving funds into gold as a store of value, responding to fears of slower economic growth, persistent inflation and geopolitical instability. As financial markets remain interrelated, weaker equity performance and currency fluctuations have further increased demand for gold, reinforcing its role as a safe-haven asset during periods of economic and political risk.

Gold smashes past $4,000 per ounce but there is good reason to be worried | Money News | Sky News

1. Using a demand and supply diagram and information from the article, explain why gold prices have been rising.

2. Analyse the likely impact of rising gold prices on the market for equities, an interrelated market.

3. Discuss the extent to which rising gold prices reflect underlying weaknesses in the global economy.