Gold is stirring again. Today, international gold prices surged by 2%, with New York futures reaching $4612 intraday, setting a new historical record once more. This rise is not accidental; there are actually two forces driving it.

On one side, geopolitical tensions are flaring up again, and safe-haven funds are becoming more active. Whenever international situations become unstable, investors tend to flock to gold — this is an old rule. On the other side, major foreign investment banks like Goldman Sachs have just issued forecasts, believing that the Federal Reserve will cut interest rates by 25 basis points in June and September this year. Once this news broke, it was a direct positive for gold — rate cuts mean the appeal of holding cash decreases, and the relative value of gold as a non-yielding asset increases.

According to general institutional forecasts, international gold prices are expected to challenge the $5000 mark this year. Before reaching that target, logically, gold should remain strong. Whether from the perspective of safe-haven demand or monetary policy, current conditions still support gold prices to continue rising.