Bank of America: Forget Wars — US Fiscal Policy Will Drive Gold’s Next Rally

Bank of America analysts are forecasting a significant surge in gold prices to $4,000 per ounce over the next year, representing an 18% jump from current levels. This prediction comes after gold has already experienced a remarkable 30% gain this year, reaching an all-time high of $3,500 in April during the US-initiated tariff war. However, the bank’s analysts challenge the conventional view that geopolitical conflicts drive gold prices long-term. They note that gold actually dipped 2% following Israel’s recent airstrikes on Iran, suggesting that wars aren’t sustainable price drivers for the precious metal. Instead, BofA attributes the potential rally to […]

Gold and Silver Price Forecast: Dollar vs Safe Haven Demand

Key Takeaways Market Overview  Gold and silver remain caught between opposing forces. Persistent geopolitical risks have offered safe-haven support, while the Federal Reserve’s increasingly hawkish stance and dollar strength apply downward pressure.   Gold trades near $3,390, struggling to break resistance at $3,388 despite elevated geopolitical tensions. Silver has pulled back to $36 after briefly reaching its highest level since 2011.  The Federal Reserve’s projections now suggest just two rate cuts in 2025, with minimal adjustments expected beyond that. This unexpected hawkish shift has strengthened the dollar, undermining demand for dollar-priced metals.  Gold Year-to-Date Performance  Silver Year-to-Date Performance  If the […]

UBS: Why Investors Should Look Beyond Gold’s Recent Retreat from Record Highs

Gold’s inability to sustain levels above $3,400/oz on three recent occasions might appear concerning, but UBS investment strategists argue this shouldn’t deter investors from maintaining gold positions. After struggling to break $2,100/oz until February 2024, gold has surged over 60% in 15 months, driven by both traditional factors (interest rates, inflation) and emerging concerns (trade conflicts, policy uncertainty). Central bank surveys reveal these factors remain highly influential in reserve allocation decisions. UBS recommends a 5% gold allocation for balanced portfolios, with a price target of $3,800/oz. For indirect exposure, gold miner bonds offer attractive 6% yields, benefiting from improved operational […]

Markets Brace for Iran’s Next Move as Dollar Strengthens After US Strikes

The US dollar strengthened and oil prices jumped on Monday after US strikes on Iran heightened geopolitical tensions. While markets have remained relatively calm so far—with the S&P 500 only 3% below its all-time high—investors are watching closely for Iran’s response. The biggest concern is whether Iran might block the Strait of Hormuz, a critical oil shipping route, which could significantly impact global energy supplies and prices. Despite the tension, some market watchers believe any downturn may be limited since investors have already been preparing for potential escalation.

Record Gold Prices Sparks Turf War: Mining Corporations vs. Millions of Miners in West Africa

Gold prices hitting record highs above $3,300 per ounce have intensified conflicts between corporate mining operations and illegal “wildcat” miners across West Africa. Major companies like Gold Fields, Newmont, and AngloGold Ashanti are deploying drones and seeking military protection as confrontations turn deadly—nearly 20 illicit miners have been killed since late 2024. The illegal mining sector supports 10 million people in sub-Saharan Africa, with 3-5 million in West Africa alone, accounting for 30% of the region’s gold production. Many locals turned to wildcat mining after corporate operations displaced communities without fulfilling job promises. However, sophisticated criminal networks, including foreign-funded operations, […]

Daly: Fed Should Show “Humility” About Economic Predictions While Balancing Dual Mandate

San Francisco Fed President Mary Daly believes the Federal Reserve has achieved a good balance between its dual mandates of employment stability and price control. During a weekend economics conference, she stressed the importance of adapting monetary policy based on evolving conditions while keeping both objectives in focus. This comes after the Fed’s recent decision to maintain interest rates at 4.25%-4.5%, with officials showing divided opinions on future rate cuts. While some Fed officials like Christopher Waller suggest rate cuts could begin as early as July, Daly sees fall as more likely. She also cautioned that central banks should communicate […]

Iran’s Nuclear Retaliation Threat: Could the World’s Oil Lifeline Be Cut?

The Strait of Hormuz, connecting the Gulf to the Arabian Sea, handles approximately 20 million barrels of oil daily – worth nearly $600 billion annually. This 50km-wide corridor is vital for Middle Eastern oil producers (Saudi Arabia, UAE, Iraq, Kuwait, Qatar) and their customers, particularly Asian economies. China, India, Japan, and South Korea depend heavily on oil passing through the strait, with some countries receiving up to 75% of their crude oil via this route. Iran could potentially close the strait using mines, fast attack boats, submarines, and anti-ship missiles deployed by its navy and Revolutionary Guard. However, such action […]

Gold and Dollar Rising Together: The “Impossible” is Happening 

At the recent Rebel Capitalist Live event in Orlando, Mike Maloney sat down with Brent Johnson of Santiago Capital to explore a surprising trend: gold and the dollar rising together. Known for his contrarian Dollar Milkshake Theory, Johnson challenges the conventional belief that these two assets can’t move up in tandem. Most investors operate under a simple assumption: when gold rises, the dollar falls, and vice versa. But according to Johnson, we’re witnessing something that many consider impossible — both assets rising simultaneously.  The Dollar Milkshake Theory in Action  “Fiat currency loses value over time — that’s just the nature […]

Goldman Sachs: Oil Could Hit $110 as Iran Threatens to Close Critical Shipping Rout

Goldman Sachs warns that oil prices could surge if problems arise in the Strait of Hormuz—the narrow waterway where much of the world’s oil passes through. The investment bank laid out what could happen: – If oil shipments through the strait were cut in half for a month, oil prices could jump to $110 per barrel – If Iran’s oil production falls by 1.75 million barrels per day, prices could reach $90 per barrel Why now? Tensions are rising in the Middle East. Iran is considering closing the strait after recent U.S. and Israeli military actions against the country. The […]

Gen Z’s Financial Reality Check: Smart Money Moves in an Uncertain Economy

Gen Z, shaped by the 2008 financial crisis and pandemic challenges, is actively preparing for a potential recession through practical strategies. They’re embracing budgeting trends like “no-buy” challenges, using financial apps, and shifting away from “YOLO” spending. Many are developing multiple income streams through side hustles and skill-building, while others are moving back home to reduce expenses and save money. Though these habits provide a stronger financial foundation, external factors like rising rent, student loans, and inflation mean even the best preparation can’t guarantee complete protection from economic downturns.