"Gold futures traded in New York have soared almost 71% this year, on pace for their best annual gain in 46 years. The last time gold had such a strong year, Jimmy Carter was president, a crisis was unfolding in the Middle East, inflation was soaring and the United States was in the midst of an energy crisis. Today, tariffs are distorting international trade, conflict is raging with Russia's war on Ukraine,"
"Gold is considered a resilient investment, with investors expecting the yellow metal will retain its value in crisis, if inflation surges, or if currencies drop in value. "Uncertainty remains a defining feature of the global economy," said Joe Cavatoni, senior market strategist at the World Gold Council. "In this environment, gold has become increasingly appealing as a strategic diversifier and a source of stability.""
Gold futures have surged about 71% year-to-date, producing the best annual performance since 1979 and climbing from roughly $2,640 a troy ounce to above a record $4,500. Geopolitical tensions, trade distortions, and energy and currency risks have driven demand for gold as a safe-haven asset. Expectations of Federal Reserve rate cuts and a weaker U.S. dollar have reduced bond yields and made gold more attractive. Analysts at JPMorgan Chase project prices could top $5,000 a troy ounce by 2026. Gold's rally has markedly outpaced the S&P 500, and higher prices are benefiting jewelers and owners of physical gold.
Read at ABC7 Los Angeles
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