"Indeed, ever since President Trump renewed his tariff threats against China last Friday, it seems like the stock market has been feeling a bit of indigestion. In any case, volatility is back for October, and the list of risks could mount before the holiday season arrives, further bolstering the case for owning gold at the core of a portfolio. It's hard to believe that gold, a safe-haven asset, has gained more than 122% in the past two years and continues to set new all-time highs."
"If there's considerable momentum and the asset is viewed as a safe haven, what could go wrong, right? Though gold - as well as silver, which also hit a record high this week - has legs to rally higher and can continue outpacing the major indices, a potential pullback can always hit from out of nowhere, especially if U.S.-China trade relations improve."
Gold surged 2.4% while the S&P 500 fell 0.6%, as renewed tariff threats from President Trump heightened market unease and October volatility. Gold has climbed more than 122% over the past two years and continues to reach record highs, prompting comparisons to Bitcoin and bullish forecasts such as Bank of America's $5,000 target. The metal's low correlation with equities supports its role in diversified, core allocations as a safe-haven. Momentum can extend the rally, but an unexpected pullback could occur if U.S.-China trade relations improve, likely benefiting stocks and pressuring gold.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]