Perfect Storm gents . Gold's ascent appears unrelenting. Its march to higher highs is taking on a surreal quality as investors seek shelter from what they perceive as ominous storm clouds gathering on the horizon. The metal is currently testing the $2800 level as I edit this piece in the late session hours of Wednesday, Oct 30 (Dec futures contract).
According to the World Gold Council, demand in the third quarter rose to 1,313 tonnes—a record third-quarter print, and up 5% from the same quarter last year.
Some in the analyst community characterize the current environment—escalating geopolitical tension, the Fed's pivot, robust central bank accumulation, US election uncertainty (etc, etc, etc)—as a "perfect storm" for the monetary metal.
Regarding the US election, Gary Wagner in a recent Kitco piece stated: With the U.S. presidential election just one week away, political uncertainty has emerged as another key driver of gold prices. The tight race between former President Donald Trump and Vice President Kamala Harris has created palpable anxiety in an already deeply divided nation. Investors are particularly focused on the potential fiscal implications, as either administration could implement stimulus measures that would increase the budget deficit and potentially fuel future inflation.
The following chart, depicting the metal's flight path year to date, marks a weighty gain exceeding 35%...