Markets are grappling with a surprising reality: even in what many analysts describe as one of the most destabilising geopolitical events in decades, gold has struggled to hold its gains.
Market reaction to the February CPI data was muted. Everybody is sitting on pins and needles waiting for surging oil prices to show up in the CPI data.
Maharrey suggested that investors often behave the same way when reacting to the constant stream of news headlines, particularly during periods of geopolitical tension.
Investor participation has also grown by leaps and bounds. In January, Indian funds reported another 1.2 million accounts, pushing the total number of gold ETF folios to 11.4 million.
The gold and silver prices are rallying, perhaps seemingly paradoxically so, given how this comes on the heels of Donald Trump saying that the Iran war will be over ‘very soon.’
The Metals Focus analysts say gold could get a bigger boost if the situation spirals out of control or if “one or more of the fat-tail risks instead crystallize.”
One headline leads to another, and before long we are jumping from war updates to oil prices, from central bank speculation to the latest move in gold or silver.
