Gold’s sudden rise sparks fear of a global crisis, experts warn something big may happen soon

Gold prices have reached a record high in the international market, leaving many experts concerned about what’s coming next. American economist Peter Schiff has warned that the sudden jump in gold could be a sign of a serious global economic problem.

Fastest jump in five years

In just one week, gold prices have surged by nearly 10 percent something not seen in the last five years. Schiff said, “This is a serious situation. Gold has hit $4,370 and might cross $4,400 tonight. I believe something big is about to happen.” His remarks have sparked fears that a major global event or financial crisis could be near.

By Friday afternoon, the spot price of gold was up 0.3 percent, reaching $4,336.18 per ounce after touching $4,378.69 earlier. December futures for U.S. gold rose 1 percent to $4,348.70 per ounce, marking the strongest weekly gain since March 2020.

Silver touched a record $54.35 per ounce before falling slightly to $53.86. This year alone, silver has returned 70 percent, while gold has jumped 65 percent. Meanwhile, platinum dropped 0.7 percent to $1,701, and palladium slipped 0.4 percent to $1,607.93 per ounce.

For ordinary people, the surge in gold has made jewelry purchases more expensive. Investors, on the other hand, are now cautious, fearing a market correction or bigger losses.

Experts link this price rally to several global factors: economic uncertainty, U.S.-China trade tensions, instability in regional banks, and expectations of U.S. Federal Reserve interest rate cuts. As investors rush to gold for safety, the demand has skyrocketed.

However, Schiff’s warning suggests that this sharp rise may not last long. Analysts say if the Federal Reserve cuts rates further, gold might climb even higher but investors should tread carefully.