Gold Gets a Lit Review – Fourth Day on the Up, Above $2,670/oz
It’s officially the golden age of gold. After a solid burst of four consecutive days, bullion is cruising back to $2,670 per ounce – the highest spot price in a full decade. The silver‑shelving market has once again turned to the shiny parent.
Why the Bull is Buffing Up
- War‑ricocheting vibes: The latest flare‑up between Russia and Ukraine is leaving investors on edge, guessing whether it’s a fresh chapter.
- Safe‑haven hustle: As uncertainty looms, people are pouring cash into hard assets. The SPDR Gold Trust (GLD) is swiping the most money it’s seen in months.
- Fed wobble: A shaky path of high U.S. rates is making folks fear inflation returns, pushing them toward a resilient, glittering hedge.
GLD: The Gold Back‑lot Fan Club
GLD has capped nearly $694 million of net inflows over the last Thursday and this week. This is the first time this pattern has made a splash since March. The “pump” is reminiscent of the last time, a full six months earlier.
Inflation and the Dollar: The Silent Party Guests
The United States is staring at a looming risk: a potential surge in inflation that could wreck the high‑rate scenario. Federal Reserve officials – led by Jerome Powell – speak cautiously, hinting that a “cut” next year might be a ⟶ 0% probability. The markets, playing the probability game, have trimmed expectations for a 25‑basis‑point dip to only a 15% chance.
Geopolitics: The US‑Ukraine‑Russia Chessboard
- US moves: Sending anti‑personnel mines to Ukraine after previously banning them, coupled with handing over ATACMS missiles, seems to arm Ukraine with stronger firepower.
- Russia’s counter‑strike: The Kremlin’s recent reforms of its nuclear doctrine, at roughly 70‑80% territory control, suggest a “do-or‑die” push in a new administration’s backdrop.
- Ceasefire talk: President Vladimir Putin keeps an eye on a possible pause, but the “grand bargains” over annexed lands remain dicey and hot.
What’s the Bottom Line?
The dual arms race – on the battlefield and in the market – seems more like a standoff than a handshake. While the tango might eventually land on the negotiation table, the risk of escalation – even back to nuclear whispers – remains a high‑stakes gamble.
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