The first and foremost factor that pushes up the price of gold is global uncertainty. You may wonder why but both geopolitical uncertainty and economic uncertainty contribute to gold become more valuable as a safe haven investment. Let us look at political and geopolitical uncertainty to begin with. Let us go back to the biggest Bull Run in gold between 1971 and 1980. The period began with the crumbling of the Breton Woods formula. Later in 1973 there was the Arab-Israeli war. Unhappy with the US support to Israel, Saudi Arabia imposed an embargo on exports of oil to the US, which almost brought the world to the brink of war. Then through the mid-70s, Iran was unstable and it eventually culminated in the ill-fated Iran-Iraq war which dragged on for over 9 years. Finally, in late 1979, Russia (then USSR) invaded Afghanistan making South Asia the new theatre of the Cold War. The intensity of the Cold War and the troubles in the Middle East and West Asia resulted in one of the largest rallies in gold prices. Even today, political and geopolitical uncertainty remains the biggest factor driving the price of gold.

Then we come to the economic uncertainty aspect. Post 2007 when the sub-prime crisis first broke out in the US, the price of gold started rising and rose all the way to 2011 as there was a huge lag effect of the sub-prime crisis and the fall of Lehman Brothers on financial markets around the world. Generally, it has been seen that any kind of uncertainty leads to an upward revaluation of the price of gold.