In July 2024, gold surged 4% to $2,426/oz, driven by lower Treasury yields and a weaker US dollar. Market volatility, particularly from a spike in equity volatility (VIX), also boosted gold's appeal.
Outlook:
Rate Cuts: Anticipated Fed rate cuts in September could influence gold, though timing remains uncertain.
US Elections: Political uncertainty surrounding the upcoming elections may drive further interest in gold as a safe haven.
Tech Volatility: Potential continued volatility in tech stocks, particularly with Nvidia’s earnings, could reinforce gold’s role as a portfolio hedge.
Gold remains a key asset for managing risk in an uncertain economic and political landscape.
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