Gold prices soared to an 18-year peak on Thursday, fueled by a confluence of factors including a depreciating US dollar and heightened investor appetite. Spot gold attained a price of $430.90 per ounce, a level unseen since 1987.

The weakening dollar makes gold more attractive to investors holding other currencies, as it effectively lowers the price of the precious metal for them. Increased demand from investment funds and individual buyers further contributed to the price surge.

According to market analysts, the outlook for gold remains positive, with expectations of continued price appreciation if the dollar sustains its downward trajectory. Geopolitical uncertainties and inflationary pressures are also expected to support gold’s appeal as a safe-haven asset.

However, some analysts caution that a potential rebound in the dollar or a significant decrease in geopolitical tensions could trigger a correction in gold prices. Investors are advised to monitor these factors closely.