Gold futures have surged 26% in 2024, hitting a record high of $2,617.40. Lower bond yields, a weaker dollar, and anticipated Federal Reserve interest rate cuts have made gold more attractive. Analyst Andrew Addison notes that gold has reached “escape velocity,” meaning prices are likely to keep rising. Gold-related ETFs have gained significantly, outpacing the S&P 500. However, with the S&P 500-to-gold price ratio at its seven-year average, some analysts, like Charles Gave, warn that a bear market could be imminent, signaling economic uncertainty and a potential flight to safety.
Gold Is at ‘Escape Velocity.’ That Could Be a Warning for Stocks.
Sep 16, 2024
Article from Barrons by Karishma Vanjani
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