DRDGOLD shares surge as gold price hits record highs amid US uncertainties
Gold keeps hitting record highs.
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DRDGOLD shares have been on a tear on the back of repeated record gold prices.
Although 1.13% down on the day as of 11am, year-to-date the stock is up a massive 223.31%.
According to Trading Economics, gold climbed to around $4,340 per ounce on Friday, moving back toward the record it set earlier and on track for its strongest weekly gain since March 2020.
Investors are seeking safety amid heightened economic uncertainties, with renewed US–China trade tensions adding to the rally
China recently accused the US of stirring “panic” over its rare earth mineral controls, further driving investors toward the safe-haven metal.
Trading Economics reported that distress signals in the US regional banking sector and concerns over the ongoing US government shutdown also supported demand for gold.
Reuters reported this morning that several banks in the US had seen their share price eroded over risk in the sector after two auto bankruptcies.
Expectations of imminent US interest rate cuts added further momentum, said Trading Economics.
Federal Reserve Chairman Jerome Powell’s recent remarks pointed to a weakening labour market, prompting investors to nearly fully price in a 25-basis-point cut this month, with another expected in December, said Trading Economics.
Gold has now surged more than 60% so far this year, buoyed by strong central bank purchases, steady inflows into exchange-traded funds, and growing demand for safe-haven assets.
Daily Forex noted that spot gold prices rose to $4,242 per ounce, marking a new all-time high.
The platform added that, despite technical indicators showing extreme overbought levels, investors remain focused on the broader fundamentals driving the market.
These include the Federal Reserve’s policy shift toward easing, escalating geopolitical risks, and record levels of bullion accumulation by central banks.
Together, these forces have fuelled an extraordinary rally in gold prices, with companies like DRDGOLD reaping the benefits as the market continues to reward producers amid one of the strongest runs for the metal in years.
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