A new report has revealed a significant rise in gold prices, with the precious metal reaching $1250 per ounce, marking a 50% correction from May’s declines. The weakening dollar and diminished expectations for US interest rate hikes have contributed to this surge. Hedge funds have also played a role, adjusting their positions by reducing short trades by a third, which has fueled the recent price increase.

As gold prices hover near multi-year highs, consolidation is expected, with support levels anticipated between $1225 and $1230 per ounce. If prices surpass $1250, discussions about new record highs could intensify. Despite minor price fluctuations, gold remains near its highest point since March 2014, driven by ongoing demand supported by expansive monetary policies from major central banks.

Since its 2011 peak, gold prices have fallen by 36%. However, in recent months, prices have stabilized above $1140 per ounce, reaching as high as $1375. Questions remain about the future direction of gold prices, with uncertainties surrounding monetary policy decisions in the US and UK.

The Brexit referendum has significantly impacted global markets, driving up the demand for safe-haven assets like gold. The pound has dropped to record lows, and sterling prices have fallen by 15%, further strengthening the precious metal’s value. Investors are closely monitoring the Federal Reserve’s policy decisions, which could influence future gold prices.

As central banks maintain low-interest rates and the global economy remains uncertain, gold continues to be a low-risk investment favored by investors seeking stability.