"Gold has broken yet another record this week, illustrating just how anxious investors are about the health of the U.S. economy. This week, the price of gold hit $4,000 per ounce for the first time ever. That's the latest milestone in its massive ongoing rally, with prices rising more than 50% just this year. The precious metal is usually seen as a "safe haven" investment, especially when more mainstream assets seem risky."
"That threatens both the stability of the global economy, since the dollar undergirds so much of its financial system, and the United States' long-established dominance as the world's economic superpower. "Gold usually rises when the dollar is weak," says Jose Rasco, chief investment officer for HSBC Americas. "Given all the uncertainty around policy, people said, 'We're not sure about the dollar' and the dollar has depreciated as a result," he added."
"Now gold is having its hottest year in nearly half a century since the global energy and inflation crises of 1979. And it's showing no signs of stopping: This week, analysts at Goldman Sachs predicted that the price of gold would hit $4,900 by the end of 2026. Daan Struyven, Goldman's co-head of commodities research, co-authored that report. He tells NPR that he wouldn't be surprised if gold beats his high expectations (or has what he calls "upside risk")."
Gold reached $4,000 per ounce for the first time, marking a rally of over 50% this year. Investors are treating gold as a safe-haven asset amid perceived risk in mainstream markets. Soaring demand for safety has coincided with President Trump's disruptive economic policies, including trade upending and threats to Federal Reserve independence. Major U.S. stock indices have nonetheless hit repeated record highs while the U.S. dollar has fallen roughly 10%. A weaker dollar threatens global financial stability and U.S. economic dominance. Goldman Sachs analysts forecast gold reaching $4,900 by end of 2026 and identify upside risk to that target.
Read at www.npr.org
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