Why Central Banks Keep Buying Gold While Markets Remain Volatile

Current gold market dynamics show interesting trends despite volatility from tariff discussions. Gold remains a foundational asset for central banks worldwide. The US Treasury holds 8,100 tons of gold across four locations (Fort Knox, NY Fed, Denver Fed, and West Point), valued at $42.22 per ounce on the Fed’s balance sheet, though market value is around $3,000. Gold is unlikely to face tariffs since most imports come from the UK (a trade surplus partner) and Switzerland (which refines 50-70% of global gold). Central banks have been major gold buyers for three consecutive years, purchasing over 1,000 tons annually to diversify […]

The Numbers Don’t Lie: Gold Has Matched Stock Returns Since 1971

Since the U.S. abandoned the gold standard in 1971, gold has delivered impressive 8.4% annual returns, nearly matching the 9.2% from global equities. Even more striking, gold has outperformed stocks since 2000, returning 10.1% annually versus 5.9% for equities. Gold’s true value lies in its diversification power – it moves independently from stocks and tends to perform best when equities struggle. During seven major stock market crashes since 1970, gold posted positive returns in six cases, averaging 17% gains. A balanced portfolio of 50% stocks and 50% gold would have outperformed either asset alone with less risk. As governments print […]

US Strikes Delay Iran Nuclear Program by Months, Not Years, Intelligence Shows

According to a Defense Intelligence Agency report, US strikes on Iran’s nuclear program achieved far less than publicly claimed by President Trump and Israeli Prime Minister Netanyahu. While B-2 stealth bombers dropped 30,000-pound bunker-busters on the deeply buried Fordo facility, causing entrance collapses and infrastructure damage, the underground facilities survived largely intact. The assessment, based on sources familiar with the intelligence, indicates that Iran anticipated the strikes and moved critical highly enriched uranium out of multiple sites beforehand. With centrifuges mostly operational and only months of delay to their program, experts worry these limited results could actually accelerate Iran’s push […]

As National Debt Tops $37 Trillion, There’s Still One Asset Washington Can’t Print

While the national debt soars $4.7 billion daily, this inflation hedge has zero counterparty risk…

Federal Reserve Holds Steady as Officials Await Full Picture on Tariff Effects

The Federal Reserve is holding steady on monetary policy as it assesses the economic impact of tariffs, according to Minneapolis Fed President Neel Kashkari. Speaking at an event in Wisconsin, Kashkari acknowledged that recent inflation data has been “quite positive,” with the Fed’s preferred inflation measure dropping to 2.1% in April. However, he emphasized that the central bank needs more time to understand the full effects of tariffs on prices before adjusting interest rates. This cautious stance aligns with Fed Chair Jerome Powell’s recent testimony to Congress, where he indicated no rush to lower rates. Fed officials are currently split […]

Fed Chair Powell Resists Trump’s Rate Cut Demands, Cites Inflation Concerns

In congressional testimony on Tuesday, Fed Chair Jerome Powell stood firm against President Trump’s calls for immediate interest rate cuts, stating the Federal Reserve is “well positioned to wait” before making policy changes. Powell explained that the Fed expects tariffs to increase inflation in coming months, starting as early as June, and wants to observe these effects before adjusting rates. Despite Trump’s harsh criticism calling Powell “dumb” and “hardheaded,” the Fed Chair received bipartisan support from committee members who praised his focus on the Fed’s core mission. Powell indicated that rate cuts could come sooner if inflation proves weaker than […]

Gold Stabilizes Near $3,325 Following Iran-Israel Ceasefire Agreement

Gold prices held steady Wednesday following Tuesday’s decline, which came after improved market sentiment from the Israel-Iran ceasefire agreement. Spot gold traded unchanged at $3,325.56 per ounce, while U.S. gold futures rose 0.2% to $3,339.30. The de-escalation in Middle East tensions reduced immediate safe-haven demand, though lingering concerns about Iran’s nuclear program maintain some support for gold holdings. Additionally, global central banks are reportedly shifting reserves away from the U.S. dollar toward gold, euros, and Chinese yuan amid geopolitical uncertainties. Markets are now awaiting key U.S. economic data: Thursday’s Q1 GDP report and Friday’s Personal Consumption Expenditures inflation data, which […]