Not everyone considers gold to be real money despite its long, consistent history as the best store of value. Even those who doubt gold's value still look to it as an indicator of overall sentiment in the markets.
(Created with Bing)
When things are going well with investments, the economy and society as a whole, gold tends to be unloved. Naturally, since there is little demand during prosperous times, the price tends to trend lower and may even stagnate.
As soon as a consistent trend of uncertainty establishes itself, people start looking for stability and confidence. Many turn their eyes to gold, and so price begins to increase with demand.
(Source: Kitco App)
Notice how gold price was hovering around $1500/oz in early 2020. Then, as much of the collective world lost its mind over COVID and governments tried to seize the opportunity to test the limits of their totalitarian tactics, uncertainty spread like wildfire. Gold spiked to just over $2000/oz in the middle of 2020.
Ever since Biden came into the picture, it's been an absolute clown show.
It's a mess.
Until some semblance of sanity is restored and things improve, I don't expect the price of gold to decrease. You can lie all you like about how "good" things are, but the price of gold shows people aren't buying it. We'll see what happens after this next election. Hopefully things improve considerably for everyone's sake.
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