Throughout history, gold has been considered valuable for several reasons, including its rarity, beauty, and unique physical and chemical properties:

• It's relatively rare compared to other metals, making it a precious commodity. It is estimated that all the gold ever mined in the world would fit into a cube of about 20 meters on each side. This scarcity makes it valuable as a store of wealth and a hedge against inflation and economic uncertainty.
• It's highly valued for its beauty and luster. It has been used for jewelry and decorative purposes for thousands of years, and its rich yellow color is widely recognized as a symbol of wealth and status.
• It has unique physical and chemical properties that make it useful in various industrial applications. For example, it is a good conductor of electricity and is used in electronics, such as computer chips and smartphones. It is also highly malleable and ductile, which means it can be easily shaped and formed into various shapes and sizes.

The long-term gold futures chart shows every downside correction since 1998 has been a buying opportunity, as “higher highs” followed each selloff. 

Today, as the yellow metal approaches a new milestone, top commodity expert Andrew Hecht sees three significant factors supporting a move that could take it above the all-time high $2,072 level.

First, central banks and governments own gold as an integral part of foreign currency reserves and have bought the most since last year. Top producers, China and Russia, are also beefing up strategic reserves, a boon for the metal.

Second, the dollar has been the world’s reserve currency for decades. However, China’s recent trade and diplomatic agreements lower the dollar’s role in the global financial system. A less effective dollar has always been bullish for gold.

Third, at 6%, U.S. inflation is 3x the Fed’s 2% target. While interest rate hikes and quantitative tightening have impacted the economy, supply issues caused by the covid pandemic and the Ukraine war push inflation beyond the Fed’s target. The higher inflation, the weaker the dollar and the higher the demand for gold.

These reasons are enough to drive gold through the $2,072 per ounce level. In addition, gold mining shares are outperforming the metal itself, which suggests high investor confidence that gold’s bullish trend has a long runway. See top gold stocks for capital preservation.

• China’s Insatiable Demand for Gold Explained
• Signs of an Economic Slowdown Weighs on Stocks
• Here’s Why You Must Pay Attention to Eldorado Gold (EGO)
• Dollar Tumbles on Weak U.S. Economic News