Despite being at record highs, gold continues to find solid buying interest from central banks around the world and global investors.
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The key is a growing fear of inflation, combined with uncertainty as to what is going to happen with US interest rates over the coming months and years.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily. The other concern is the loss of the Western World leader, not only due to the latest government shutdown but the ongoing consolidation of power in the Executive Branch.
It is pre-dawn Wednesday morning, October 1, as I write this and the US government has officially been shut down. But we knew this was coming, didn’t we? After all, the gold market, in all its iterations, rocketed to record highs early this week as central banks around the world and global investors rushed to the safe-haven market. This fits under Newsom’s Rule #5: It’s the what, not the why. We have been able to see the ‘what’ as gold futures (GCZ25) climb ever closer to the $4,000 and the cash Gold Index (GCY00) approaches $3,900. If more interested in ETFs, any number of them have also reached new highs. This morning, though, I’m going to break my own rule and talk about three of the ‘whys’ behind gold’s historic move. Some of you won’t agree. Like the Indian parable of The Blind Men and the Elephant, everyone has a different “view”.
