Search Results for: why gold

Gold, silver, and platinum are taking a breather after a big run-up—but don’t count them out just yet. Gold and silver are both up 26% so far this year, and platinum is leading the pack with a 54% surge. Prices have leveled off recently, especially for gold, but experts say this is likely just a pause before another leg higher. The forces driving metals higher—like central bank buying, inflation risks, and a weaker dollar—are still in play. Plus, with interest rate cuts on the table, gold and silver could get a boost as holding metals becomes more attractive than short-term

After reaching a record $3,500 per ounce in April, gold has lost momentum and pulled back approximately 5%, puzzling analysts who expected geopolitical volatility and dollar weakness to drive prices higher. HSBC’s chief precious metals analyst James Steele sees this as the beginning of a larger correction, joining other analysts like those at Citi who predicted a 25% decline. Why HSBC expects gold to fall: – Fading safe-haven demand as worst-case trade war scenarios haven’t materialized – Trump’s compromise approach to tariffs reducing deglobalization fears – Markets successfully navigating various crises, reducing the need for defensive positioning – Higher prices

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

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

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

Gold fell to $3,355 per ounce despite escalating Middle East tensions after the US and Israel attacked Iran’s nuclear facilities over the weekend. After initially rising 0.8%, gold reversed course as the dollar strengthened. Why gold isn’t rallying: While geopolitical conflicts typically boost gold as a safe-haven asset, investors have two main concerns. First, they doubt the conflict will escalate significantly since Iran hasn’t retaliated and lacks support from Russia and China. Second, if tensions spike oil prices and fuel inflation, the Federal Reserve may keep interest rates high – bad news for gold, which pays no yield.  The

Despite Treasury Secretary Scott Bessent’s recent assurance that the U.S. will “never” default on its debt, history tells a different story. The U.S. has actually failed to meet its financial obligations several times since 1789, including during the War of 1812, the Civil War, and the 1933 gold clause abrogation under FDR. With U.S. debt-to-GDP now above 120% and rising, concerns about long-term default risk are growing. Recent Treasury bond market behavior reflects this anxiety, with 30-year yields jumping sharply in spring 2025. While default isn’t imminent, the article warns that dismissing this possibility entirely is no longer prudent.

Gold and the S&P 500 are both nearing all-time highs simultaneously—a rare market event that reflects conflicting investor sentiments. While stocks typically signal optimism and risk-taking, gold represents safety and uncertainty hedging. This unusual tandem rise suggests investors are betting on both economic growth (driven by AI and potential Fed rate cuts) and protecting against risks like inflation, deficits, and dollar weakness. The gold-to-S&P ratio currently favors gold at 1.76, indicating some preference for safety. Experts compare this delicate balance to “spinning two plates”—possible but requiring specific conditions to sustain.

Central banks are secretly accumulating massive amounts of gold – over 1,000 metric tons annually – as they diversify away from the U.S. dollar amid rising geopolitical tensions and economic uncertainty. Most of this buying goes unreported, with trade data revealing mysterious gold flows through major refining hubs to undisclosed buyers. This shift stems from fears about currency weaponization and sanctions risk, making gold attractive as a neutral reserve asset that no single country can control. With many central banks holding far less gold than the global average, there’s substantial room for continued accumulation. This “silent revolution” in reserve management

Gold prices are defying traditional market logic, approaching $3,400 per ounce despite expectations of a pullback. The key driver isn’t retail investors but central banks, which are secretly buying approximately 80 metric tons monthly. This shift reflects growing concerns about the US dollar’s reliability as a reserve currency, particularly as America increasingly weaponizes dollar access against both enemies and allies. Poland’s central bank governor captures the sentiment: gold is “free from direct links to any country’s economic policy.” The trend appears sustainable as long as geopolitical tensions persist and the US continues its “America First” approach to dollar policy.

Gold prices are up 40% this year while industrial metals like copper are down 10%. This unusual gap suggests economic problems ahead, as gold typically rises when investors are worried. Central banks and regular investors are buying gold for safety from inflation and political uncertainty. Some think gold is in a bubble since everyone’s buying it. But with stocks at record highs and potential economic challenges ahead, gold could go even higher if the market crashes. The big question: Is gold warning us about economic trouble, or is it just overpriced because everyone wants it?

The gold-silver ratio has reached 100 – meaning you need 100 ounces of silver to buy one ounce of gold. This is far above the 25-year average of 68, signaling that silver is historically undervalued. Why the gap? Gold hit record highs above $3,500 as investors sought safety amid economic uncertainty. Silver lagged behind because it’s not just a precious metal – it’s also widely used in technology and manufacturing, making it vulnerable to trade tensions and economic slowdowns. This creates both risk and opportunity. Silver is more volatile than gold, but it’s facing its fifth straight year of supply

Gold prices might be just getting started. Despite a recent dip to $3,200 an ounce, fund manager Jim Luke says $5,000 gold by decade’s end now feels like a “frankly conservative” forecast. Why? Explosive demand from China, central banks in emerging markets, and steady buying from the Middle East are powering the current run—while Western investors haven’t even joined the party yet. Luke sees a likely scenario where global demand converges, pushing gold sharply higher. Add in rising debt, geopolitical tension, and undervalued mining stocks, and gold’s bull run could still be in its early stages.

Gold has surged in 2025, peaking at $3,500 per ounce, driven by three key forces: Geopolitical Tensions: Ongoing conflicts in the Middle East and Ukraine have intensified demand for safe-haven assets. U.S. Fiscal Concerns: A $1.9 trillion deficit and potential tax cut extensions without offsetting cuts have rattled investor confidence. Central Bank Demand: Emerging market central banks are steadily increasing gold reserves to reduce reliance on the dollar. While gold recently dipped to $3,185, underlying fundamentals remain strong. Analysts expect prices could return to $3,500 by year-end—if macro and geopolitical risks persist.

Hedge fund manager David Einhorn argues that gold’s rise has more to do with trust erosion in government policy than inflation. He cites persistent deficits, deglobalization, and lack of political discipline as reasons investors are seeking the safety of gold. According to Einhorn, gold has become a hedge against fiscal mismanagement—not just currency debasement.

The U.S. Treasury bond market is exhibiting alarming behavior that suggests economic trouble ahead, even as stock investors remain seemingly oblivious. On April 7, Larry Fink, CEO of BlackRock, warned that most CEOs believe we’re already in a recession. Oddly, this statement didn’t drive investors to the usual safe haven of Treasury bonds. Instead, the 10-year Treasury yield experienced a dramatic intraday swing—a rare event previously seen only during major financial disruptions like the 2008 crisis. Bond investors are increasingly distrustful of U.S. economic policy, fearing rising tariffs and returning inflation. This has fueled a flight to gold, which surged

From 2022 to 2024, gold and Bitcoin moved together as alternative assets, with gold gaining 67% while Bitcoin surged nearly 400%. However, in 2025, this relationship has broken down. While gold has gained 16% in 2025, Bitcoin has fallen more than 6% from its January peak of $109,000. Analysts argue Bitcoin’s previous growth came from major financial firms like BlackRock entering the market, along with government backing from El Salvador and US plans for a crypto reserve. Its recent decline stems from two factors: investors selling after positive news was already reflected in the price, and Bitcoin’s continued link to

Gold prices have soared to record heights, reaching $3,167.57 per ounce last week. The metal has gained 16% this year, following an impressive 27% growth in 2024. Analysts comparing today’s rally to the 1980s gold boom see key differences suggesting this surge may last longer. Today’s rally is driven mainly by geopolitical factors: President Trump’s aggressive tariffs, conflicts in Ukraine and the Middle East, and deteriorating international relations. Unlike the 1980s boom—which ended quickly after the Iranian Revolution and oil crisis were resolved—today’s complex global issues seem unlikely to be solved through swift international cooperation. Other factors pushing gold higher

According to a recent article from Barron’s, the investment management industry is experiencing a fundamental convergence that’s erasing traditional boundaries between conventional and alternative assets, public and private securities, and institutional/wealth management solutions. This shift rests on four pillars: – the rise of multistrategy asset management – the end of traditional strategic asset allocation – the blending of public/private markets – and the growing importance of wealth management. Alternative investments now represent approximately $25 trillion in assets under management, yet the wealth management channel accounts for only 16% of that total. Client allocations to alternatives currently range from 1% to

Gold prices have surged over 40% since late 2023, now approaching $3,200 per ounce. This increase stems not from jewelry or industrial demand but from gold’s role as a financial safe haven during uncertain times. Though gold pays no interest like bonds or dividends like stocks, it serves as protection against inflation and economic instability. Gold-backed ETFs have made it easier for investors to add gold to their portfolios. The metal demonstrated its value during COVID-19 when prices jumped 22% in six months despite low inflation. Central banks have also increased gold purchases following sanctions on Russia, as many seek

Recession fears are intensifying on Wall Street as multiple economic indicators point to a potential downturn. Goldman Sachs has increased its 12-month recession probability from 15% to 20%, while a Bank of America survey shows 55% of fund managers view a trade war-triggered global recession as the top market risk. Consumer pessimism is also rising, with recession expectations hitting a nine-month high according to the Conference Board’s Consumer Confidence Survey. Prominent economist David Rosenberg predicts a recession could emerge as soon as July, highlighting four critical warning signs: First, household finances are struggling, with only 63% of Americans able to

South Korea is running out of gold bars. The national mint (KOMSCO) stopped sales last month because they can’t get enough raw materials. Even Seoul’s gold vending machines have sold out completely. Why the gold rush? Retail investors are seeking safety during political chaos. President Yoon faces impeachment, and acting presidents have sparked controversy. This political turmoil coincides with Trump’s White House return and fears of new trade wars. As the Korean won fell 11% against the dollar in late 2024, gold investment jumped 29%. Investors are abandoning South Korea’s disappointing stock market (which lost ₩224.88 billion from individual investors)

Russians are increasingly turning to gold as a financial safe haven amid growing economic pressures. Consumer gold purchases hit 75.6 metric tons in 2024, marking a 6% increase from 2023 and a dramatic 62% jump from pre-war levels in 2021. Why? A few reasons: record-high inflation at 9.5%, the ruble’s historic lows, and international sanctions limiting investment options. The trend benefits both consumers and the Russian government, which needs outlets for its annual 300-metric-ton mining output, especially since the central bank has reduced its historically large gold purchases. The strategy has paid off for Russian buyers, with gold prices surging

Gold’s current chart pattern suggests a significant repricing event driven by geopolitical tensions, particularly between the US and China. Rather than a typical market trend, the pattern mirrors historical booms that could either continue climbing if global tensions persist or stabilize if diplomatic relations improve. This makes gold not just a trading opportunity but a crucial indicator for broader investment decisions. Gold’s current price action presents a familiar pattern that typically emerges during major market repricing events, but with a unique geopolitical twist. The chart suggests that gold’s upward trajectory is primarily driven by US-China relations, making it more than

As both gold and bitcoin reach record highs in 2024, with bitcoin surpassing $100,000 and gold reaching nearly $2,800 per ounce. Today a growing number of investment experts suggest including both assets in portfolios for enhanced diversification. Gold, with its 5,000-year history, offers proven stability and acts as a hedge against dollar depreciation and geopolitical risks. Bitcoin, despite its higher volatility and shorter 15-year history, presents potential for exponential growth while moving more in sync with technology stocks. Investment professionals suggest a conservative approach, with BlackRock recommending up to 2% bitcoin allocation in traditional portfolios, while gold might comprise up