Gold prices tend to soar due to a combination of economic, geopolitical, and market factors. Here are some common reasons:

Economic Uncertainty:

During recessions or financial crises, investors turn to gold as a "safe haven" asset.

High inflation or deflation often pushes gold prices up, as it retains value better than fiat currencies.

Geopolitical Tensions:

Conflicts, wars, or political instability increase gold demand as a hedge against uncertainty.

Currency Depreciation:

When major currencies, such as the US Dollar, weaken, gold becomes more attractive to international investors.

Interest Rates:

Lower interest rates reduce the opportunity cost of holding gold (since it doesn't earn interest), making it more appealing.

Demand and Supply Dynamics:

Increased demand for gold in industries like electronics or jewelry, particularly in countries like India and China, can push prices higher.

Limited mining output or disruptions in supply chains also contribute to price spikes.