Gold has surged 35% this year, driven by geopolitical conflicts, Federal Reserve actions, and strong central bank demand amidst U.S. political uncertainties. Meanwhile, the U.S. economy grew at 2.8% in Q3, lower than expected, while consumer confidence rose significantly. Job openings fell, reflecting a cooling labor market, and concerns over electric vehicle sales persist.
The present state of affairs seems like an episode of The Twilight Zone, with the unfortunate twist that this is not a television show; it’s an artificially delayed reality.
Gold prices are solidly up and hit another record high in early U.S. trading Tuesday. Silver prices are also on the march higher and hit a four-week high overnight.
Gold is considered a unique asset due to its enduring value, historical significance, and application in various technologies like computers, spacecraft, and communications equipment.
1. Gold’s new high signals global central banks are likely accumulating the precious metal to diversify away from the dollar, as persistently large fiscal deficits threaten to erode its real value and lead to more inflation. Gold’s move has been broad as well as pronounced with the precious metal making 50-year highs versus three-quarters of…
Along with gold’s safe-haven appeal, analysts warn investors to watch Asia’s insatiable appetite for the precious metal.
The final trading week of the month kicked off with stocks sliding on Monday, setting investors up for a losing month where much of the optimism of the early summer has fizzled into more tempered expectations of the Fed’s tightening campaign.
It’s mentioned often how central banks are one of the pillars of support when it comes to gold prices. JP Morgan’s analysis recently said that global gold investment has reached the highest level since 2012, and it wasn’t that long ago that it would have been strange to find an active central banker talking about gold.
U.S. equity futures struggled for direction as risk appetite cooled from last week’s rally. The yen weakened after the Bank of Japan made its first unscheduled bond purchases in months.
Some of the forecasters who were first out of the box to predict a U.S. recession are starting to hedge their bets as inflation ebbs and the economy remains resilient.
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