It is worth noting that the sharp rise in gold prices has become a characteristic feature of trading in conditions of devaluation, as investors turn to assets in search of protection against inflation and rising government debt worldwide.
Robin Brooks, a senior fellow at the Brookings Institution, expressed his concerns about the current situation, noting that "the rise in precious metal prices is striking and raises serious concerns." He added that this is part of a broader issue related to the global debt crisis.
According to Brooks, markets are increasingly worried that governments may attempt to cope with rising debt through inflation. He also noted that despite the relative stability of the US dollar last year, it has begun to decline at the beginning of this year.
Brooks warned that a falling dollar could significantly accelerate the rise in gold prices and currency devaluation, increasing purchasing power for those not using the dollar.
Analysts at Goldman Sachs recently revised their forecasts and raised the target price for gold to $5400 by the end of the year, increasing interest among private investors in diversifying their portfolios and protecting assets.
According to analysts, "the risks associated with our revised gold price forecast are two-sided, but largely skewed towards the upside, as investors may further seek to diversify their portfolios amid uncertainty in global politics."
This year, the price of gold has increased against the backdrop of key geopolitical events, such as the capture of Venezuelan leader Nicolás Maduro by the United States and President Trump's threats to impose tariffs on Greenland.
Since the beginning of the year, the price of gold has risen by 15%, following a significant increase of 65% in 2025.
Despite the high demand for gold from central banks of other countries amid a decline in the share of US Treasury bonds, Brooks believes that this cannot explain such a sharp rise in gold prices this year.
"The existing bubble in the precious metals market indicates that central banks do not play a key role in this process," added Brooks.
