Why gold going up?

Precious metal is often perceived as a safe haven in times of turmoil. Gold prices rose to multi-year highs in the early days of the Covid-19 pandemic, for example, as cases spread internationally and the stock market slumped. The Russian invasion of Ukraine on Thursday morning also caused gold prices to skyrocket. Weakness in the dollar and inflation are among the factors likely to drive precious metal prices, David Lennox told CNBC's Street Signs Asia on Monday.

Lennox said that it seems that everything is ready for the US dollar to go down, although it hasn't happened yet. If the greenback weakens, it would be a boon for gold, he added. Geopolitical tensions between major military powers could also push gold prices sooner than expected, Lennox said. In particular, Russia's military presence along its border with Ukraine has been building up, and that is a focus point where it could quickly turn into something disastrous, he said.

Do you have any confidential news? We want to hear from you. Get this delivered to your inbox and learn more about our products and services. In times of economic uncertainty, as seen in times of economic recession, more people are turning to investing in gold because of its lasting value. Gold is often seen as a safe haven for investors during turbulent times.

When expected or actual yields on bonds, stocks and real estate fall, interest in investing in gold may increase, pushing up its price. Gold can be used as a hedge to protect against economic events such as currency devaluation or inflation. In addition, gold is also considered to provide protection during periods of political instability.