Marketplace U.S. dollar down, gold hits all-time high
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Dec 22, 2025 Henry App, a Marketplace reporter specializing in markets and commodities, breaks down why gold prices have skyrocketed to over $4,400 per ounce, driven by economic uncertainty and foreign demand. Carla Javier, also a Marketplace reporter, dives into the complexities of product recalls, discussing the operational and reputational challenges companies face when issues arise. Together, they explore how shifts in consumer behavior and market dynamics are reshaping industries.
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Gold's Rise Tied To Rates And Safe-Haven Demand
- Gold hit record highs partly because investors view it as a defensive asset amid rate and geopolitical uncertainty.
- Lower interest rates and central bank buying can both boost gold demand and prices.
Why Falling Rates Make Gold More Attractive
- Lower interest rates make borrowing cheaper, which can fuel speculative purchases of gold.
- Gold becomes relatively more attractive when bank interest falls because it doesn’t pay interest itself.
Central Banks Buying Gold As Dollar Doubts Grow
- Some countries are diversifying away from U.S. Treasuries toward gold because of policy and political uncertainty.
- Central bank demand from those nations has increased global gold prices.