Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Gold is on track for an unprecedented eighth consecutive monthly gain, a streak that will be the longest in its history. However, several headwinds threaten to interrupt the demonstration.
As investors flock to this safe-haven metal amid macroeconomic uncertainty, market strategists warn that the rally could reach a critical point.
Gold’s historic rally faces unprecedented risks
The chief economist of Moody’s Analytics, Mark Zandi, warns that the financial markets seem more tense, with factors emerging for a major market sell-off.
He says this is a threat It is higher for stocks and corporate bondsHowever, even digital currencies, gold and silver are still at risk despite the recent declines.
“Valuations are high… Investors are simply investing on the belief that prices will rise rapidly in the future because they have done so in the recent past.” said Zandy.
The economist points to mixed economic fundamentals as a source of tension. The real GDP of the United States grew at more than 2%, below the potential of the economy of about 2.5%. At the same time, Employment is stabilizedUnemployment continues to rise.
Inflation, measured by the Fed’s preferred gauge of consumer spending cuts, remains stubbornly and uncomfortably high at 3%.
At the same time, Renewed chaos in tariffs And the growing threat of conflict with Iran It does not provide much benefit to risk assets.
The Treasury market adds another layer of uncertainty. Zandi warns Those hedge funds Backed by leverage, he entered a fragile market left by a shrinking Federal Reserve and global investors.
“It’s not hard to imagine everyone running out the door at once, and interest rates rising sharply.” He said.
The huge budget deficit and questions about the safety status of Treasuries in a deglobalizing world increase the risks.
Despite these difficulties, Gold continues to attract investors As a permanent store of value. Data from Calci shows that the metal is on track for its eighth consecutive month of green season.
At the same time, Bank of America strategist Michael Hartnett advises commerce Oil for short-term geopolitical gain Rather, “proper gold” for long-term security.
Central banks now have more reserves than US Treasuries In reserves, for the first time since 1996, reflecting its role as a hedge against fiat currency risks.
China’s gold shortage is causing a supply crisis amid historic growth
There is also a shortage of gold in China After the Chinese New Year It adds upward momentum, even if it carries its own risks.
Reports indicate that many gold shops have stopped bar sales and resumed pre-holiday contracts due to severe supply constraints.
Analysts indicate that this may The price of gold is pushing around $10,000 per ounce In extreme scenarios, however, sudden market reactions can lead to short-term corrections.
“A severe gold shortage will send gold to $10,000/oz soon!” I noticed Silver trading company.
Technical analysts also remain cautious. Rashad Hajiyev points out to Resistance is around $5,160. At the same time, He spread The FXGold analyst highlights the critical gap of $5,100, suggesting that an opening below this level may favor sellers and limit buying momentum.
In short, while gold’s historic streak continues so far, investors are striking a delicate balance between growing demand, geopolitical uncertainty, fragile markets and key technical levels.
The combination of these factors means that the next movements of the metal could be as volatile as they are historical.
