Gold Is Hitting Record After Record as US Confidence Cracks
The moves underscore how the sell-the-US narrative is gaining traction
Gold just blasted past another milestone, extending this year’s 30% rally and briefly surpassing $3,500 an ounce for the first time.
The moves underscore how the “sell-the-US narrative” is gaining speed. And banks have become progressively more positive: Goldman Sachs has forecast $4,000 an ounce midway through next year. Jefferies analysts say gold may be “the only true safe-haven asset left.”
Bullion gained as much as 2.2% on Tuesday, following a 2.9% jump in the previous session. In the near term, the ructions undermine Treasury Secretary Bessent’s recent comments on his support for a strong dollar stance. Gold’s surge also begs the question of just how weak a dollar Trump is willing to accept.
“Gold’s rapid ascent this year tells me that markets have less confidence in the US than ever,” said Lee Liang Le, an analyst at Kallanish Index Services. “The ‘Trump Trade’ narrative has evolved into a ‘sell America’ narrative.”