Real interest rates are falling. This makes the most intuitive sense. Gold doesn’t yield anything because it doesn’t produce any income or profits. But bond yields in developed countries across the globe aren’t much better than the 0% yield in gold.
The dollar is falling. Gold is its own animal as an asset class — part commodity, part hedge, part speculation and part currency. Gold has been a store of value for thousands of years so it should come as no surprise that the yellow metal has a relationship with the U.S. dollar.
People are worried about inflation. Since 1974, the average inflation rate in the United States is roughly 3.9% but in 23 out of those 46 years inflation was running above 3% and in 23 of those 46 years it was running below 3%.