"Wall Street is brushing off recession risks and the ramifications of a government shutdown, with stocks at healthy highs and interest rate cuts expected soon. Yet gold is telling a different story: prices have surged more than 45% over the past year to nearly $3,870, as investors and central banks pile in for safety. Goldman Sachs now sees gold prices reaching $4,300 by late 2026, with analysts expecting buyers will be driven by diversification away from Treasuries,"
"The stock market is still rallying to record highs, the Fed is widely expected to cut rates at its meeting later this month, and the general consensus is that recession risks have all but faded. But despite the sentiment that all is well in the economy, investors are flocking to the safe haven asset of gold-usually a sign that traders are battening down the hatches."
Stocks are at healthy highs while markets expect imminent Fed rate cuts and view recession risks as largely faded. Analysts predict any volatility from a government shutdown will be short-lived. Despite broad optimism, gold has risen more than 45% year-over-year to nearly $3,870 as investors and central banks seek safety and diversification. Goldman Sachs projects gold at $4,300 by late 2026, citing shifts away from Treasuries, de-dollarization, and geopolitical risks. UBS calls gold an essential hedge. The Zijin Gold IPO raised roughly HK$25 billion ($3.2 billion), reflecting elevated demand for gold exposure.
Read at Fortune
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