I think there are a few things worth calling out related to the recent rise in gold.
First, when the price of gold rises most people will point to existing geopolitical turmoil as the main driver. In a Reuters article this morning, Ashitha Shivaprasad writes:
"Safe-haven gold prices hit an all-time high on Friday on track for a fourth straight weekly gain as geopolitical risks in the Middle East and economic concerns about China spurred robust demand….There is potential for more upside in prices amid central bank purchases and as demand for safe-haven assets rises with growing anxiety among investors about geopolitical conflicts escalating"
It is not crazy to think that existing geopolitical events could be driving some of the price movement, but the question is whether the entire price movement could be explained by these issues which have been going on for months now.
That seems unlikely.
Joseph Wang, who runs FedGuy.com, has a different hypothesis: "Gold still surging - kinda concerning. Maybe someone is preparing for a big geopolitical move as they know they'll lose their dollars and euros after the fact
First, when the price of gold rises most people will point to existing geopolitical turmoil as the main driver. In a Reuters article this morning, Ashitha Shivaprasad writes:
"Safe-haven gold prices hit an all-time high on Friday on track for a fourth straight weekly gain as geopolitical risks in the Middle East and economic concerns about China spurred robust demand….There is potential for more upside in prices amid central bank purchases and as demand for safe-haven assets rises with growing anxiety among investors about geopolitical conflicts escalating"
It is not crazy to think that existing geopolitical events could be driving some of the price movement, but the question is whether the entire price movement could be explained by these issues which have been going on for months now.
That seems unlikely.
Joseph Wang, who runs FedGuy.com, has a different hypothesis: "Gold still surging - kinda concerning. Maybe someone is preparing for a big geopolitical move as they know they'll lose their dollars and euros after the fact