📊 Gold has just hit another all-time high, even though key market indicators are pointing in the opposite direction:
- Markets pricing-out a 50 basis point rate cut - Investors are expecting less monetary easing.
- Markets dismissing geopolitical risk concerns - The fear of major geopolitical events seems to be subsiding.
- Market volatility hitting monthly lows - Less uncertainty usually dampens gold prices.
- Inflation data exceeding expectations - Higher inflation generally supports gold as a hedge, but it hasn’t caused a broader market reaction.
- Recession fears for 2024 being priced out - Economic stability is expected, which normally reduces the appeal of safe-haven assets like gold.
Despite these factors, gold is trading as if we are in a major crisis, suggesting that some investors see underlying risks that the broader market is overlooking.
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