Gold surged to fresh all-time highs on Monday, with bullion jumping 2.5% to $3,410 per ounce by 11:20 a.m. ET, as mounting distrust in U.S. financial assets and inflation fears drive a flight to safety unlike anything seen since the global debt crises of the early 2010s.
Goldman Sachs postpones gold price prediction to mid-2026, citing Fed decisions. Gold expected to reach $2,910/oz by end of 2025. Antimony mining project in Idaho could boost US demand and reduce vulnerability to China's market control.
You might think bonds or T-bills look intriguing right now, with some offering nearly 5% back guaranteed. Or maybe you’ve been looking at Walt Disney Co’s (NYSE: DIS) stock, down 25% in the last year.
The yellow metal rose more than 8%, marking the biggest monthly gain since July 2020 and the first monthly gain since March. Investors should tap the rally with the best-performing ETFs over the past month.
Given the drive for inflation hedge and flight to safety, the gold price is expected to increase further. As such, investors should tap the rally with the best-performing ETFs so far this year.
It has been difficult to trade the metals market over the past year. The fundamentals have been indicating that gold and silver should be shooting up, yet the markets have been going up and down a great deal.
It has been difficult to trade the market based on fundamentals since the pandemic struck. We appear to have several new black swans on the horizon to further muddy the application of fundamentals.
The University of Michigan Consumer Sentiment Index is at its lowest level since 2011. Retail sales dropped 1.1%, which includes inflation. So, in real terms, the drop was 1.5%, which is a huge drop in one month.
The bond market appears to have discounted all the talk about stimulus and the threat of inflation exploding. The markets are saying that the consequences of printing the amounts of money that the government is printing is unsustainable.
The market is still digesting the CPI news and the PPI, which indicates that inflation is running above expectations. The big question is whether this inflation is going to be temporary, as the Fed suggests, or is it going to be longer term?
Fundamentally, gold and silver have a bullish future. There are shortages in both sectors, which should drive prices higher. They are also attracting buyers with prices moving up in gold and silver.
