Gold has surged past $2,750, defying the traditional negative correlation with U.S. Treasury yields due to traders' bets on a Trump victory and rising U.S. debt concerns.
Despite climbing treasury yields, gold has seen a significant increase of over $150, indicating a critical shift in market dynamics and perceptions of value among investors.
With the U.S. fiscal deficit hitting $1.8 trillion, concerns are growing that should Trump win, debt could surge further, thereby reducing the opportunity cost of holding gold.
If the employment growth falls below expectations and the Fed cuts rates, gold may reach $2,800, driven by bullish market sentiment towards the 'Trump trade'.
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