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iShares Gold Trust Shares of the iShares Gold Trust (ARCA:IAU), Quote.Headers.trade-ideas

The Trust seeks to reflect such performance before payment of the Trusts expenses and liabilities. It is not actively managed. The Trust does not engage in any activities designed to obtain a profit from, or to ameliorate losses caused by, changes in the price of gold. The advisor intends to constitute a simple and cost-effective means of making an investment similar to an investment in gold. An investment in physical gold requires expensive and sometimes complicated arrangements in connection with the assay, transportation, warehousing and insurance of the metal.

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Gold prices surge on Fed rate cut anticipation, weakening dollar, and increasing safe-haven demand. ETF inflows signal potential for more gains.

Gold ETFs Poised For Liftoff: Can The Fed&#39;s Rate Cut Propel Prices To New Heights?

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Goldman Sachs bullish on gold, citing central bank demand and expected Fed rate cut. Price target of $2,700/oz by 2025. Iron ore forecast downgraded.

Goldman Sachs Sees Gold Higher, Takes A Downbeat Stance On Iron Ore

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Mohamed El-Erian, Chief Economic Advisor at Allianz, highlighted on X that gold is trading within $5 of a new record high.

Mohamed El-Erian Observes Spike In Gold Says, Precious Metal &#39;Trading Within $5 Of A New Record High&#39;

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Gold is back in the spotlight, and eyes are on the Fed. As the U.S. Federal Reserve prepares for what could be an aggressive rate cut, gold ETFs, especially the gold-bullion tracking ETFs such as the SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) and the iShares Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAU#NYSE">IAU</a>), are <a href="https://www.benzinga.com/topic/gold">riding the wave</a>.
Gold prices, already hovering near record highs, are inching closer to a breakthrough that could send the precious metal into uncharted territory.
With the dollar softening, the allure of gold as a safe haven has only intensified. Year-to-date, the GLD has surged nearly 25% and the IAU has gained about 25%, outpacing broader market indices like the S&amp;P 500 (which is up 18% in comparison). While physical gold-tracking ETFs have been surging, ETFs tracking gold miners haven&#8217;t been left behind.
The VanEck Gold Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GDX#NYSE">GDX</a>) is up about 27% YTD and the VanEck Junior Gold Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GDXJ#NYSE">GDXJ</a>) is up 28% YTD.
<h1 class="wp-block-heading">Gold Shines on Dovish Fed, Weaker Dollar</h1>
Investors seem unfazed by today's slight lull in prices — understandable, given the anticipation of a possible 50-basis-point rate cut. The weakening dollar, compounded by the Fed&#8217;s dovish tone, is creating the perfect storm for gold to shine even brighter.
Behind the scenes, central banks and institutional buyers have been steadily piling into gold, boosting its momentum. Over the past three months, gold-tracking ETFs have drawn in billions in inflows, with retail investors now jumping on board, hoping to capitalize on the metal's momentum.
The net inflows into these ETFs signal that many see more upside ahead, especially as the Fed's anticipated rate cuts could push yields lower, further reducing the opportunity cost of holding gold.
Read Also: <a href="https://www.benzinga.com/markets/equities/24/09/40862122/rate-cut-prospects-fuel-investor-risk-appetite-gold-hits-record-highs-harris-outperforms-trump-t">Rate-Cut Prospects Fuel Investor Risk Appetite, Gold Hits Record Highs, Harris Outperforms Trump: This Week In The Markets</a>
<h1 class="wp-block-heading">Gold Emerging As A Preferred Hedge</h1>
The macroeconomic backdrop has added extra fuel to the rally. From rising geopolitical tensions to global economic uncertainties, investors are seeking shelter, and gold is emerging as their preferred hedge. The metal's safe-haven appeal is being bolstered by fears of economic slowdowns, not just in the U.S. but globally. 
China's persistent economic struggles, for example, are only adding to the demand for gold, as investors diversify away from riskier assets.
<h1 class="wp-block-heading">What Could Temper Gold Bulls?</h1>
While a rate cut seems all but certain, there are still factors that could keep a lid on gold's upside. Any sign of a more conservative move by the Fed, such as a smaller-than-expected cut, could temper bullish enthusiasm. 
There's also the possibility that stronger-than-expected economic data could boost the dollar, muting gold's rally.
For now, though, the combination of central bank buying, ETF inflows and weakening dollar dynamics makes gold an attractive option for those looking to ride out market volatility.
With the potential for gold to push through its previous highs, investors are watching closely to see if the Fed's next move will give the precious metal the final nudge it needs.
Will gold soar to new heights, or will a more cautious Fed decision put the brakes on the rally? The only thing certain is that, for now, gold is shining brighter than ever.
Read Next: 
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</ul>
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Gold ETFs Poised For Liftoff: Can The Fed's Rate Cut Propel Prices To New Heights?

Goldman Sachs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>) reinforced its bullish outlook on gold, citing increased central bank demand and expectations of a U.S. Federal Reserve <a target="_blank" href="https://www.benzinga.com/federal-reserve" rel="noreferrer noopener">interest rate cut</a> tomorrow.
"While we see some tactical downside to gold prices under our economists' base case of a 25bp Fed cut on Wednesday, we reiterate our long gold trading recommendation and our price target of $2,700/oz by early 2025," the investment bank said in a note.
With the price of gold making new all-time highs, reaching 2589.60 on the spot market, the two-quarter upside price target of 5% doesn't seem much. At the moment, the market is pricing a 65% chance of a 50-basis-point cut tomorrow, <a target="_blank" href="https://www.google.com/search?client=firefox-b-d&amp;q=cme+fed+watchtool" rel="noreferrer noopener">per</a> the CME FedWatch tool.
Now read:<a target="_blank" href="https://www.benzinga.com/markets/equities/24/09/40861213/why-interest-rate-cuts-wont-automatically-boost-the-stock-market" rel="noreferrer noopener"> Why Interest Rate Cuts Won't Automatically Boost The Stock Market</a>
Gold is traditionally seen as a hedge against inflation and economic uncertainty. With the U.S. recession still in discussion and a Fed pivot toward more accommodative monetary policies, investor interest in gold is <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40689742/goldman-sachs-bullish-on-gold-wall-street-giant-targets-2-700-by-early-2025-driven-" rel="noreferrer noopener">expected to remain strong</a>, accompanied by buying from foreign central banks, <a target="_blank" href="https://www.benzinga.com/markets/asia/24/05/38649656/how-chinas-central-bank-gold-buying-frenzy-drove-prices-to-record-highs-attracting-gen-z-to-gold-bea" rel="noreferrer noopener">particularly China</a>.
The Fed's anticipated rate cuts could <a target="_blank" href="https://www.benzinga.com/markets/equities/24/09/40861213/why-interest-rate-cuts-wont-automatically-boost-the-stock-market" rel="noreferrer noopener">lower bond yields</a>, making gold more attractive as it does not generate interest.
In contrast to its positive gold outlook, the bank recently downgraded its projection for iron ore prices. The bank slashed its fourth-quarter 2024 forecast by $15 per metric ton, lowering it to $85 due to concerns of oversupply despite stabilizing demand from China.
Despite China's attempts at economic stimulus and rising steel demand, the broader economic slowdown and the real estate crisis have dampened demand for iron ore. Its futures briefly dipped below $90, reaching the lowest point in almost two years.
Goldman noted that while there might be short-term support due to restocking ahead of the holiday week in October, but the continued buildup of iron ore inventories is likely to drive prices further down.
Supply-demand imbalances have been a key issue for the market, particularly with major players like Brazil's Vale and Australia's BHP maintaining production levels.
Kallanish Consulting analyst Ian Roper explained the current price dynamics <a target="_blank" href="https://www.bnnbloomberg.ca/business/international/2024/09/11/iron-ore-tests-floor-as-plunge-to-90-a-ton-puts-mines-at-risk/" rel="noreferrer noopener">for</a> Bloomberg.
"We need to eliminate about 100 million tons to balance this market, and to do that, we need prices to settle in the $80s," he noted.
Also read:
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<li><a href="https://www.benzinga.com/news/24/09/40875211/bhp-group-sounds-alarm-on-copper-supply-ai-and-ev-growth-could-drive-prices-soaring-report" target="_blank" rel="noreferrer noopener">BHP Group Sounds Alarm on Copper Supply, AI and EV Growth Could Drive Prices Soaring: Report</a></li>
</ul>
Benzinga Mining is the bridge between mining companies and retail investors. Reach out to <a href="mailto:licensing@benzinga.com" target="_blank" rel="noreferrer noopener">licensing@benzinga.com</a> to get started!
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Mohamed El-Erian, Chief Economic Advisor at Allianz, highlighted on X writing &#8220;Gold is trading within $5 of a new record high.&#8221;
What Happened: El-Erian posted a screenshot showing gold prices at $2524.06, reflecting a 5.87% gain. The lowest close was recorded at $2369.31 on Aug. 5, with a 30-day average price of $2453.21. 
Gold mining stocks have recently experienced a notable surge in value. The VanEck Gold Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GDX#NYSE">GDX</a>), which includes holdings like Newmont (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEM#NYSE">NEM</a>), Agnico Eagle Mines (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AEM#NYSE">AEM</a>), and Barrick Gold (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GOLD#NYSE">GOLD</a>), has risen by 26.51% this year, according to <a href="https://pro.benzinga.com/dashboard">data from Benzinga Pro data</a>.
Similarly, other ETFs such as SPDR Gold MiniShares Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLDM#NYSE">GLDM</a>), iShares Gold Trust Micro Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAUM#NYSE">IAUM</a>), and iShares Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAU#NYSE">IAU</a>) have also seen gains of over 21% this year.
Historically, gold reached an all-time high of $2,531.70 in August. The precious metal last traded at $2,509, and December futures contracts are currently trading at $2,543.70, down 0.45%. Year to date, gold prices have gained approximately 22.3%.
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Gold is trading within $5 of a new record high.<a href="https://twitter.com/hashtag/economy?src=hash&amp;ref_src=twsrc%5Etfw">#economy</a> <a href="https://twitter.com/hashtag/markets?src=hash&amp;ref_src=twsrc%5Etfw">#markets</a> <a href="https://twitter.com/hashtag/gold?src=hash&amp;ref_src=twsrc%5Etfw">#gold</a> <a href="https://twitter.com/hashtag/econtwitter?src=hash&amp;ref_src=twsrc%5Etfw">#econtwitter</a> <a href="https://t.co/hzcQCutV9a">pic.twitter.com/hzcQCutV9a</a>
&mdash; Mohamed A. El-Erian (@elerianm) <a href="https://twitter.com/elerianm/status/1828048988072816986?ref_src=twsrc%5Etfw">August 26, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
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See Also: <a href="https://www.benzinga.com/markets/asia/24/08/40563191/nasdaq-100-falls-1-tests-50-day-average-support-tech-stocks-in-flux-on-monday">Nasdaq 100 Falls 1%, Tests 50-Day Average Support: Tech Stocks In Flux On Monday</a>
Why It Matters: The recent rise in gold prices follows a series of bullish predictions and market movements. Last week, <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40457722/gold-is-getting-its-moment-in-the-sun-and-experts-say-the-record-high-prices-could-">experts noted</a> that gold had surged approximately 20% this year, reaching a record high. Ole Hansen, head of commodity strategy at Saxo Bank, highlighted that gold has been in an "uninterrupted rally" since October when it was priced at $1,810 an ounce.
Further bolstering this trend, Ryan McIntyre, Managing Partner at Sprott Inc., predicted that gold prices would remain &#8220;very positive&#8221; for <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40509313/expert-predicts-gold-to-be-very-positive-for-next-18-months-a-whole-new-source-of-m">the next 18 months</a>. He attributed this to increased buying by central banks and recent inflows into ETFs backed by gold.
Adding to the optimistic outlook, J.P. Morgan Research estimated that gold would exceed $2,500 per ounce by the end of 2024, with predictions that it would reach $2,600 per ounce by 2025. This forecast underscores gold&#8217;s role as a safe investment, <a href="https://www.benzinga.com/startups/24/08/40550668/jpmorgan-predicts-2-600-gold-prices-by-2025-what-a-1-million-gold-bar-means-for-the-market">especially amid economic uncertainty</a>.
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This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Kaustubh-Bagalkote" target="_blank" rel="noreferrer noopener">Kaustubh Bagalkote</a>

Mohamed El-Erian Observes Spike In Gold Says, Precious Metal 'Trading Within $5 Of A New Record High'

In a recent interview, Ryan McIntyre, Managing Partner at Sprott Inc., forecasted a bright future for gold prices, expecting them to remain &#8216;very positive&#8217; for the next 18 months and beyond.
What Happened: McIntyre appeared on CNBC&#8217;s &#8220;Squawk Box&#8221; on Wednesday to discuss the record highs in gold prices. He attributed the surge to several factors, including increased buying by central banks and recent inflows into ETFs backed by gold. 
&#8220;To us, that&#8217;s a whole new source of madness coming in. So we see gold as being very positive over the next 18 months and beyond, frankly,&#8221; McIntyre said.
McIntyre also highlighted the fiscal situation of many Western governments as a significant driver behind the spike in gold demand. 
&#8220;We&#8217;re running 7% deficits today, in a nonrecessionary environment, which is pretty unique circumstance,&#8221; he explained.
See Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40501889/nvidia-stock-to-surge-to-340-in-medium-term-portfolio-manager-sees-strong-rally-int?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Nvidia Stock To Surge To $340 In Medium Term? Portfolio Manager Sees Strong Rally Interspersed By 35-80% &nbsp;Pullbacks</a>
He further noted that gold is seen as a tangible real asset and probably the &#8220;only true hedge against elevated sovereign risks that we see in the future.&#8221;
Why It Matters: McIntyre&#8217;s comments come in the wake of a significant rise in gold prices, which have surged approximately 20% this year, reaching a record high <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40457722/gold-is-getting-its-moment-in-the-sun-and-experts-say-the-record-high-prices-could-">just shy of $2,500 an ounce</a>. The price of gold has been on an "uninterrupted rally" since October when it was priced at $1,810 an ounce.
Furthermore, the ongoing geopolitical tensions, particularly in the Middle East, have intensified the<a href="https://www.benzinga.com/24/08/40445319/gold-nears-record-highs-amid-geopolitical-uncertainty-and-fed-speculations"> demand for safe-haven assets</a> like gold, pushing its price near record peaks. The fluctuating news from the region casts doubt on the success of ceasefire talks between Israel and Gaza, thereby boosting gold&#8217;s appeal as a secure investment.
Moreover, the anticipation of a <a href="https://www.benzinga.com/markets/asia/24/08/40503528/asia-mixed-europe-markets-advance-gold-steady-near-all-time-high-dollar-strengthens-global-markets-t">September rate cut </a>by the Federal Reserve, as indicated by the FOMC minutes, has solidified expectations and added to the market anticipation, keeping gold prices steady near their all-time high.
Price Action: At the time of writing on Thursday during market hours, iShares Gold Trust Micro (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAUM#NYSE">IAUM</a>) was trading 1.32% lower at $24.72, SPDR Gold MiniShares Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLDM#NYSE">GLDM</a>) was down by 1.32%, and iShares Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAU#NYSE">IAU</a>) was trading 1.43% lower, according to <a href="https://pro.benzinga.com">Benzinga Pro</a>.
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<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/08/40498543/amid-heated-trump-harris-battle-crypto-industry-pours-unprecedented-119m-into-2024-electio?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Amid Heated Trump-Harris Battle, Crypto Industry Pours &#8216;Unprecedented&#8217; $119M Into 2024 Elections</a></li>
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This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Pooja-Rajkumari" target="_blank" rel="noreferrer noopener">Pooja Rajkumari</a>

Analyst Color

General

Expert Predicts Gold To Be 'Very Positive' For Next 18 Months: 'A Whole New Source Of Madness Coming In'

The price of gold has <a href="https://www.benzinga.com/news/large-cap/24/08/40419054/gold-prices-hit-all-time-highs-of-2-500-as-traders-jump-on-rate-cut-train-mining-stocks-on-the-mov">reached an all-time high</a>, and experts are predicting that it could climb even higher due to a combination of factors.
What Happened: Gold prices have surged approximately 20% this year, reaching a record high on Friday. The spot gold price is now just shy of $2,500 an ounce.
Ole Hansen, the head of the commodity strategy at Denmark&#8217;s Saxo Bank, in a Monday note, stated that the price rally has been in an &#8220;uninterrupted rally&#8221; since October when gold was priced at $1,810 an ounce. A standard-size gold bar of about 400 troy ounces now costs over $1 million.
See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/24/08/40453739/elon-musk-sends-dogecoin-spiking-with-ai-generated-image-says-willing-to-serve-in-governme?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Elon Musk Sends Dogecoin Spiking With AI-Generated Image, Says &#8216;Willing To Serve&#8217; In Government Department That Spells D.O.G.E.</a>
What&#8217;s Driving The Market Higher?
A potential <a href="https://www.benzinga.com/news/24/08/40433267/mary-daly-of-federal-reserve-pitches-gradual-interest-rate-cuts-citing-inflation-confidence-we-are-o#:~:text=She%20emphasized%20the%20need%20for,%25%2C%20according%20to%20the%20report.">Federal Reserve interest rate cut,</a> following slower-than-expected July inflation data and higher unemployment figures, is a significant factor driving the market&#8217;s expectation for higher gold prices. Investors are eagerly awaiting Jerome Powell&#8217;s keynote at the Fed&#8217;s annual symposium at Jackson Hole, Wyoming, on Friday, for indications of the central bank&#8217;s next move.
Daniela Sabin Hathorn, a senior market analyst at Capital.com, <a href="https://capital.com/jackson-hole-preview-all-eyes-on-powell-and-gold">wrote</a>, &#8220;The question now is how big will the rate cut be?&#8221; A larger rate cut could lead to higher gold prices as a fall in US interest rates typically depresses bond yields and the greenback, driving investment into gold, which is internationally denominated in the dollar.
Geopolitical risks such as the wars in Ukraine, the Middle East, and the upcoming US presidential election are also boosting the appeal of gold, a traditional safe haven. In China, consumers are buying gold to preserve value amid a depressed economic environment, a property crisis, and a weak currency.
Hansen wrote, &#8220;Continued central bank demand amid geopolitical uncertainty and de-dollarization, and not least gold&#8217;s ability to offer a level of security and stability that other assets may not provide&#8221; would support the yellow metal.
Gold Outpaces Bitcoin Gains
Gold has also surpassed Bitcoin&#8217;s (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) performance, indicating that <a href="https://www.benzinga.com/markets/cryptocurrency/24/08/40107228/why-golds-luster-could-ignite-a-digital-gold-bitcoin-rally-10x-research">cryptocurrencies may not serve</a> as the effective hedge against lower interest rates, a declining dollar, and financial instability that Bitcoin proponents had anticipated. Over the past month, Bitcoin has dropped more than 10%, while gold prices have risen by 6% since mid-July.
"Gold is getting its moment in the sun, and investors are taking note," said Jason Goepfert, senior research analyst with Sundial Capital Research, <a href="https://www.barrons.com/amp/articles/gold-price-record-high-rally-1e904b77">reported</a> Barron&#8217;s.
Why It Matters: Gold is often viewed as a safe-haven investment in times of economic and political uncertainty. The precious metal can also serve as a hedge against declines in the value of the U.S. dollar. This has been a key factor in the recent surge in gold prices, <a href="https://www.benzinga.com/news/earnings/24/08/40349152/barrick-ceo-on-high-gold-prices-why-he-says-the-miner-is-undervalued-you-get-a-lot-for-free">as highlighted</a> by Barrick Gold Corp.&#8217;s CEO, Mark Bristow, who stated that the world&#8217;s geopolitical situation is the primary reason for the surge in gold prices, not inflation.
Meanwhile, Gold mining stocks have recently seen a significant rise in value. The VanEck Gold Miners exchange-traded fund (ETF) (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GDX#NYSE">GDX</a>), which includes holdings such as Newmont (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEM#NYSE">NEM</a>), Agnico Eagle Mines (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AEM#NYSE">AEM</a>), and Barrick Gold (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GOLD#NYSE">GOLD</a>), has increased by nearly 25% this year, according to data from <a href="http://pro.benzinga.com">Benzinga Pro</a>. Typically, when gold prices rise, the profits and sales for these mining companies also surge.
Other ETFs such as SPDR Gold MiniShares Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLDM#NYSE">GLDM</a>) and iShares Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAU#NYSE">IAU</a>) have also gained over 21% this year. 
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next: <a href="https://www.benzinga.com/news/24/08/40409247/former-google-ceo-eric-schmidt-highlights-nvidia-as-major-ai-player-in-now-deleted-video-thats-not-a?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Former Google CEO Eric Schmidt Highlights Nvidia As Major AI Player In Now Deleted Video</a>
Photo courtesy: Michael Sutton via Flickr

$BTC

Gold 'Is Getting Its Moment In The Sun' And Experts Say The Record High Prices Could Climb Even Higher: Here's The Case For Even More Glittering Gains

Billionaire investor Ray Dalio, founder of Bridgewater Associates, recently highlighted <a href="https://www.benzinga.com/topic/us-china-relations-0">escalating U.S.-China tensions</a> and the importance of diversification in the face of growing global risks.
Speaking at the Greenwich Economic Forum in Hong Kong, Dalio emphasized the potential for significant economic and political upheaval in the coming years, as <a href="https://www.bloomberg.com/news/articles/2024-06-05/ray-dalio-touts-us-elections-china-conflicts-as-global-risks?cmpid=BBD060524_OUS&amp;utm_medium=email&amp;utm_source=newsletter&amp;utm_term=240605&amp;utm_campaign=openamericas">reported</a> by Bloomberg.
He stressed that U.S. election results and economic sanctions against China are among the most critical issues currently.
<h2 class="wp-block-heading">Risk Of Internal Conflicts Within The US</h2>
Dalio underscored the risk of internal conflicts within the U.S., particularly surrounding the contentious issue of election legitimacy.
He emphasized that the policies of a reelected Donald Trump would starkly contrast with those of a second-term Joe Biden presidency. However, he noted a bipartisan consensus on anti-China policies, which could lead to severe economic consequences on a global scale.
<h2 class="wp-block-heading">Economic Warfare Often Precedes Military Conflict</h2>
&#8220;There's a great risk of economic sanctions that would be really terrible for the world,&#8221; Dalio said, highlighting that economic warfare often precedes military conflict. He warned that the long-standing one-China policy, especially regarding Taiwan, could face significant challenges, affecting international investors.
Dalio painted a broader picture of a world facing unprecedented risks due to:
<ul>
<li>enormous debt levels</li>
<li>internal political strife</li>
<li>great power clashes. </li>
</ul>
Adding to these are natural disasters, pandemics, and the rapid advancement of artificial intelligence.
<h2 class="wp-block-heading">Economic Uncertainties Make Diversification Crucial</h2>
These uncertainties, he argued, make effective diversification in investments more crucial than ever. &#8220;The power of diversification is greater than the power of even good decision-making,&#8221; Dalio said. 
He stressed the need for investors to spread their assets across countries, currencies, and asset classes to mitigate risks. He noted that while Chinese assets have recently seen declines, they are now attractively priced, and Bridgewater has found effective ways to invest in China over the past five years.
Related: <a href="https://www.benzinga.com/markets/asia/24/04/38070613/billionaire-investor-ray-dalio-remains-bullish-on-china-despite-a-looming-100-year-storm-the-time-to">Billionaire Investor Ray Dalio Remains Bullish On China Despite A Looming &#8216;100-Year Storm&#8217;: &#8216;The Time To Buy Is When Everyone Hates The Market&#8217;</a>
Despite the tensions, Dalio remains invested in both the U.S. and China, recognizing their dominance in revolutionary new technologies. However, he also pointed to neutral states such as those in Southeast Asia, India, and the Middle East as attractive investment destinations, often faring better in conflicts compared to the main warring parties.
<h2 class="wp-block-heading">Dalio: Prefer Equity Over Debt, Hedge With Gold</h2>
Dalio expressed a preference for equity assets over debt, citing concerns about the latter&#8217;s inadequate returns. He warned that central banks holding significant debts may have to monetize losses, leading to late-cycle inflation.
Popular exchange-traded funds offering diversified exposure to U.S. equities include: the SPDR S&amp;P 500 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) and the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>).
As a hedge, he recommended holding gold, which he described as the third-largest reserve currency after the U.S. dollar and the euro. The SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) and the iShares Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAU#NYSE">IAU</a>) are popular gold-tracking ETFs.
Dalio&#8217;s insights highlight the critical need for investors to diversify their portfolios amid rising global risks, particularly those stemming from U.S.-China economic tensions. By spreading investments across various regions and asset classes, investors can better navigate the uncertain landscape ahead.
Read Next: <a href="https://www.benzinga.com/economics/macro-economic-events/24/05/38946694/ray-dalio-us-on-the-brink-of-civil-war-but-not-one-where-people-grab-guns-and-sta">Ray Dalio: US &#8216;On The Brink&#8217; Of Civil War, But Not One Where People &#8216;Grab Guns And Start Shooting&#8217;</a>
Photo: <a href="https://www.flickr.com/photos/websummit/" target="_blank" rel="noreferrer noopener">Web Summit</a> on Flickr

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Economics

Ray Dalio Warns Of US-China Economic Sanctions, Stresses Diversification

As the price of gold continues to soar, prominent economists Mohamed A. El-Erian and Peter Schiff are emphasizing the ongoing strength of the gold market. El-Erian highlights the significant expansion of the commodity rally, while Schiff underscores the importance of holding onto gold and silver assets amid a promising market outlook.
What Happened: El-Erian, the chief economic advisor at Allianz, took to X to share his thoughts on the recent surge in gold prices. He pointed out that the price of gold has hit over 20 new highs this year, with the latest highs being accompanied by a significant expansion of the commodity rally. El-Erian also noted that the drivers behind these highs now include a wider range of demand and supply factors.
&#8220;This month's new highs in the price of #gold is not unusual,&#8221; El-Erian wrote.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">This month's new highs in the price of <a href="https://twitter.com/hashtag/gold?src=hash&amp;ref_src=twsrc%5Etfw">#gold</a> is not unusual. We have had over twenty new highs so far this year. What I find more notable: (i) Recent highs have been accompanied by a significant broadening of the commodity rally; and (ii) Drivers now encompass a wider set of… <a href="https://t.co/TnynVeWSnQ">pic.twitter.com/TnynVeWSnQ</a>
&mdash; Mohamed A. El-Erian (@elerianm) <a href="https://twitter.com/elerianm/status/1792983521247764516?ref_src=twsrc%5Etfw">May 21, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
Meanwhile, Schiff, a <a href="https://www.benzinga.com/markets/cryptocurrency/24/05/38911373/peter-schiff-says-bitcoin-is-dead-long-live-silver-but-is-it-really-true">well-known gold advocate</a> and Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) critic, also took to X to advise investors to hold on to their gold and silver assets. He warned that selling during a bull market is easy, but buying back in is the hard part. Schiff believes that the current gold rally is just getting started and that good things come to those who wait.
&#8220;Don&#8217;t sell any of your #gold or #silver. It&#8217;s easy to sell out of a bull market. The hard part is buying back in. Just sit tight and enjoy the ride. It&#8217;s likely just getting started. Good things come to those who wait. We&#8217;ve waited a long time, so what&#8217;s coming should be great,&#8221; Schiff wrote. 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Don&#39;t sell any of your <a href="https://twitter.com/hashtag/gold?src=hash&amp;ref_src=twsrc%5Etfw">#gold</a> or <a href="https://twitter.com/hashtag/silver?src=hash&amp;ref_src=twsrc%5Etfw">#silver</a>. It&#39;s easy to sell out of a bull market. The hard part is buying back in. Just sit tight and enjoy the ride. It&#39;s likely just getting started. Good things come to those who wait. We&#39;ve waited a long time, so what&#39;s coming should be great.
&mdash; Peter Schiff (@PeterSchiff) <a href="https://twitter.com/PeterSchiff/status/1792997390334513439?ref_src=twsrc%5Etfw">May 21, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
Investors interested in gold ETFs might check&nbsp;SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>), iShares Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAU#NYSE">IAU</a>), Abrdn Physical Gold Shares ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SGOL#NYSE">SGOL</a>), VanEck Gold Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GDX#NYSE">GDX</a>), which invests in global gold miner equities.
<a href="https://x.com/PeterSchiff/status/1792997390334513439"></a>See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/24/05/38910906/bitcoin-dogecoin-ethereum-retrace-on-profit-taking-by-retail-investors-analyst-predicts-pa?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Bitcoin, Dogecoin, Ethereum Retrace On Profit-Taking By Retail Investors: Analyst Predicts Parabolic Rise For King Crypto Following Consolidation Phase</a>
Why It Matters: The price of gold has been on a steady rise, recently hitting a new record high of $2,450 per ounce. This surge is attributed to the expectation that the U.S. Federal Reserve <a href="https://www.benzinga.com/trading-ideas/24/05/38941163/gold-shatters-expectations-with-a-record-high-of-2-450-per-ounce-amid-expectations-of-lower-interes">might lower interest rates</a> by September, making gold a more attractive investment option.
This trend has also been reflected in the actions of prominent investors. For instance, Michael Burry, the legendary investor who predicted the 2008 financial crisis, <a href="https://www.benzinga.com/markets/asia/24/05/38878116/big-short-investor-michael-burry-bets-heavy-on-gold-renewable-energy-stocks-exits-amazon-alphabet">recently made significant bets on gold</a> and renewable energy stocks, indicating a shift in investment strategies towards physical commodities and renewable energy.
However, not everyone is optimistic about the economic situation. Schiff, who is also the CEO of Euro Pacific Capital, recently criticized President Joe Biden&#8216;s new tariffs, <a href="https://www.benzinga.com/news/24/05/38862552/mohamed-el-erian-says-bond-and-equity-prices-getting-a-boost-after-softer-than-expected-headline-cpi">labeling them as taxes</a> that will only add to the economic misery.
Price Action: On Tuesday, Gold spot prices closed at $2,422 per ounce, up 0.07%, according to the data <a href="https://pro.benzinga.com/dashboard">from Benzinga Pro</a>.
Read Next: <a href="https://www.benzinga.com/markets/cryptocurrency/24/05/38909046/top-trader-ditches-bitcoin-for-altcoins-dogecoin-killer-shiba-inus-potential-breakout-and-?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Top Trader Ditches Bitcoin For Altcoins, &#8216;Dogecoin Killer&#8217; Shiba Inu&#8217;s Potential Breakout And More</a>
Image Via Shutterstock 
This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.

Mohamed El-Erian And Bitcoin-Critic Peter Schiff Highlight Gold's Soaring Prices And Market Momentum: 'Just Sit Tight And Enjoy The Ride'

Subscribers to&nbsp;Chart of the Week&nbsp;received this commentary on Sunday, April 7.
All eyes and ears are unwaveringly on Federal Reserve Chair Jerome Powell&#39;s every move, eager for any morsel of information about interest rates. This past week, Powell spoke at Stanford University, sharing the Fed will more than likely lower the benchmark interest rate in the latter-half of the calendar year. While inflation did gain traction in January and February and many investors are worried the impending presidential election would impact timing, Powell shot down the concerns, brushing them off as unworthy of continued conspiracy.
Yet on Thursday, Minneapolis Fed President Neel Kashkari noted &quot;If we continue to see inflation moving sideways, then that would make me question whether we need to do those rate cuts at all.&quot; To further convolute the dynamic, Fed Governor Michelle Bowman on Friday went the other way, noting interest rates may have to be hiked to combat inflation. The lack of consensus from the central bank did a number on bond yields, with the 10-year Treasury yield last seen at 4.37%. The fallout from the bond yield spikage is not only a rough week for U.S equities, but also an extended runway for safe-haven assets like gold.
As the Fed see-saws and weighs the stream of economic data SPDR Gold Shares (ARCA:GLD) have made extreme moves to the upside, outpacing the broader market trends. Now Up 12.7% year-to-date, the shares are climbing above the SPDR S&amp;P 500 ETF Trust&#39;s (SPY) 8.7% for the same time frame, and don&#39;t look to be slowing anytime soon.
Gold futures for March turned in an 8.4% leap, the commodity&#39;s best monthly performance since July 2020. The precious metal has enjoyed six consecutive fresh record highs, and are now forming a cup and handle pattern on the monthly chart with the 1,000-month moving average -- which tends to precede a bullish shift. Even further, it has taken out the level that is twice its 2016 lows at the round $100 mark and just last night saw its Initial and Maintenance Margin requirements lifted overnight by the Chicago Mercantile Exchange (CME).
&nbsp;
<img alt="GLDcotw" src="https://schaeffers-cdn.s3.amazonaws.com/images/default-source/schaeffers-cdn-images/2024/april/mmo/gldcotw.jpg?sfvrsn=1ce8a606_2" style="height:497px; width:810px" />
It&#39;s hard to imagine what to expect in the coming months for gold, as surely it must be approaching its top. But this may not necessarily be the case when looking at six month returns and wider, as per data pulled by Schaeffer&#39;s Senior Quantitative Analyst Rocky White. Gold has gained at least 7.5% in one month, when compared to higher monthly returns since 1990. Typically, this has led to poor returns for gold over the short term. The next month has averaged a loss of 0.92%, with just 38% of the returns positive. The three-month returns are also bad, but it gets better at the six-month mark, where returns resume to being similar to other years and 12-month returns even outperform slightly.
<img alt="Goldreturnscotw" src="https://schaeffers-cdn.s3.amazonaws.com/images/default-source/schaeffers-cdn-images/2024/april/mmo/goldreturnscotw.jpg?sfvrsn=18e8a606_2" style="height:502px; width:551px" />
Until the Fed moves definitively in one direction, market activity will be anything but docile. The appeal of jumping aboard outperforming safe-haven assets for the long term will be hard to resist, especially when you factor in just how influential the incoming election season will be and the crescendo it will build to from summer to fall. Keep an ear to the ground and stay close to GLD&#39;s highly liquidated ETF peers VanEck Gold Miners (ARCA:GDX) and iShares Gold Trust (ARCA:IAU), as a diversified portfolio is almost always a good idea, especially with so many outside factors looming large.
The article &quot;<a href="https://www.marketbeat.com/articles/gold-where-will-it-go-after-this-record-breaking-run-2024-04-10/">Gold: Where Will It Go After This Record-Breaking Run?</a>&quot; first appeared on MarketBeat.

Federal Reserve

Gold: Where Will It Go After This Record-Breaking Run?

Gold prices have been on a tear lately, hitting a slew of record highs in the past two months. Gold prices climbed more than 20% since October. The yellow metal increased 4% last week and notched a third successive weekly gain. &nbsp;
U.S. gold futures gained 1.7% to $2,347.30 per ounce in the last trading session despite a solid uptick in nonfarm payrolls in March. So, what&#39;s behind gold prices shattering record highs? China&#39;s move to unremittingly add gold holdings, the Federal Reserve&#39;s dovish stance, and sticky inflation are helping gold prices scale northward.
The People&#39;s Bank of China purchased gold for the 17th consecutive month in March and extended its precious metal buying spree. China&#39;s gold reserves soared to 72.74 million ounces last month.
China increased its gold reserves since the bullion metal is considered usually a safe-haven asset that provides financial security amid uncertainty in the global markets. After all, Chinese legislators have noticed how the Western governments confiscated Russia&#39;s reserves following their invasion of Ukraine.
What&#39;s more, trade conflicts with the United States and geopolitical upheavals around Taiwan would compel China to keep acquiring gold. China, at present, has the wherewithal to buy the yellow metal as the manufacturing side of its economy expanded in March for the first time in six months.
Several countries, along with China, are also buying gold to partly replace the dollar, a process better known as de-dollarization. This is because gold not only acts as a security but also increases investment value.
In the United States, most of the market participants are expecting the Fed to start trimming interest rates in the latter half of 2024. Traders are now pricing in a more than 50% chance that the central bank will cut interest rates in June. Fed Chair Jerome Powell also assured investors about interest rate cuts and wasn&#39;t taken aback by the current rise in the PCE index.
Needless to say, a lower interest rate environment makes fixed-income investments less enticing. Since these instruments can&#39;t provide higher yields, money will flow out of them, and flow into gold. On the other hand, a rise in the key inflation gauge for the time being acts as a boon for the yellow metal. This is because gold acts as a hedge against inflation.
Hence, as gold shimmers, gold mining stocks have a fair chance to gain. These stocks have been bearing an uptick in production expenses due to higher labor costs. But with gold prices rallying, the miners are well-poised to join in.
The iShares Gold Trust (ARCA:IAU), by the way, has gained 12.6% so far this year. This calls for astute investors to keep a tab on gold mining stocks such as Aris Mining Corporation (AMEX:ARMN), Equinox Gold (AMEX:EQX), Idaho Strategic Resources (AMEX:IDR) and Triple Flag Precious Metals Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tfpm#NYSE">TFPM</a>). These stocks have a Zacks Rank#3 (Hold).
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/7c/64473.jpg?v=1382519239" />

Image Source: Zacks Investment Research
Aris Mining is a gold producer primarily in the United States. The company&#39;s expected earnings growth rate for the current year is 65.8%. Its estimated earnings growth rate for next year is 87.3%.
Equinox Gold is involved in exploring and developing gold deposits. Its main projects include the Mesquite gold mine in California. The company&#39;s expected earnings growth rate for the current year is 71.4%. Its estimated earnings growth rate for next year is 350%.
Idaho Strategic Resources predominantly produces gold at the Golden Chest Mine. The company&#39;s expected earnings growth rate for the current and next quarter are 500% and 133.3%, respectively. Its estimated earnings growth rate for the current year is 200%.
Triple Flag Precious Metals is a gold-focused streaming and royalty company that provides financial solutions to the mining industry worldwide including the United States. The company&#39;s expected earnings growth rate for the current year is 21.2%. Its estimated earnings growth rate for next year is 32.5%.
<a href="https://www.zacks.com/stock/news/2251800/4-stocks-to-keep-an-eye-on-as-the-yellow-metal-glitters?cid=CS-BENZ-FT-analyst_blog|investment_ideas-2251800">To read this article on Zacks.com click here.</a>

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4 Stocks to Keep an Eye on as the Yellow Metal Glitters

U.S. government debt is reaching unsustainable levels, and the latest analysis points to an even<a href="https://www.benzinga.com/news/treasuries/24/02/37227285/government-debt-exceeds-120-of-gdp-why-former-imf-economist-very-worried-about-us-fiscal-crisis"> more concerning future.</a>
A new economic model developed by Bloomberg Economics predicts that in 88% of scenarios, U.S. debt as a percentage of GDP will rise in the coming 10 years.
In a Monday letter to investors, Citadel founder Ken Griffin <a href="https://www.benzinga.com/economics/macro-economic-events/24/04/38039631/ken-griffin-slams-irresponsible-us-deficit-we-must-stop-borrowing-at-the-expense-">referred to mounting national debt as a significant issue</a>, saying that &#8220;we must stop borrowing at the expense of future generations.&#8221;
According to a recent survey, about 85% of Americans worry that current debt levels <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/02/37324835/ticking-time-bomb-over-85-of-americans-fear-national-debt-crisis-impact-on-their-fu">could have a negative impact in their future</a>.
Official data from the St. Louis Fed shows that debt equaled 121% of the country&#8217;s GDP in the last quarter of 2023. The rate has floated around 120% in past years, after peaking at 132% during the COVID pandemic. These levels are above a previous historical record set following World War II.
In late May 2023, <a href="https://www.benzinga.com/news/23/06/32704441/biden-signs-debt-ceiling-bill-to-avert-government-default">the government averted a default by raising the debt limit even higher</a> in an emergency measure. While lawmakers on both sides of the aisle agree that government borrowing has reached unhealthy levels, a lack of agreement as to how to solve the problem keeps Congress from finding a satisfactory solution.
Earlier this year Fed Chair Jerome Powell said that the current rate of debt acquisition <a href="https://www.benzinga.com/startups/24/02/37156426/jerome-powell-says-34-trillion-national-debt-is-ready-for-an-adult-conversation-janet-yellen-calls-s">means we're ​​&#8221;borrowing from future generations,"</a> and called for elected officials to have an adult conversation "about getting the federal government back on a sustainable fiscal path.&#8221;
With <a href="https://www.benzinga.com/general/24/03/37851477/u-s-national-debt-has-increased-by-nearly-8-5-billion-per-day-over-the-past-year">national debt increasing by an average of $8.5 billion a day during the past year</a>, Republicans generally argue for spending cuts, while Democrats point towards problems in tax revenue and high interest rates as the causes behind the rising fiscal deficit.
A recent budget proposal by President Joe Biden is aimed at reducing the federal deficit by $3 trillion in the next decade <a href="https://www.benzinga.com/24/03/37603424/bidens-budget-aims-to-slash-us-deficit-by-3-trillion-next-decade-through-higher-taxes-on-wealthy-big">by raising taxes on wealthy individuals and corporations</a>.
Where To Find Safe Haven: Bank of America chief strategist Michael Hartnett recently linked a rise in <a href="https://www.benzinga.com/money/how-to-invest-in-gold">gold</a> and Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) with rising concerns over debt, as investors look for hedges against a possible debt-led crises affecting the U.S. economy.
As opposed to the U.S. dollar, which can be emitted to infinity by printing new cash, both Bitcoin and gold have a cap on their supply, making them safer assets to store value in times of economic volatility.
Also read: <a href="https://www.benzinga.com//node/37227285">Government Debt Exceeds 120% Of GDP: Why Former IMF Economist &#8216;Very Worried&#8217; About US Fiscal Crisis</a>
SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>), the largest ETF following the gold market by total assets, has gained over 23% in the last six months. Other gold ETFs, including iShares Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAU#NYSE">IAU</a>) and Abrdn Physical Gold Shares ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SGOL#NYSE">SGOL</a>) follow a similar trajectory.
<a href="https://www.benzinga.com//node/38053974">Bitcoin has hit a slump this week,</a> losing 5% of its value at the time of writing on Tuesday, yet the cryptocurrency has been enjoying a rally in recent months.
When concerns about national debt dominate the news, investors typically seek assets known for retaining value. With the debt ceiling suspension set to last until Jan. 1, 2025, Congress is likely to face another stand-off on debt issues following the <a href="https://www.benzinga.com/topic/2024-election">presidential election in November</a>, regardless of the winning candidate.
Real estate is another sector known to serve as a store of value, and investors can take part without the need to buy actual land. ETFs following the sector reflect its growth trends, with some of the largest being Vanguard Real Estate Index Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNQ#NYSE">VNQ</a>) and Schwab US REIT ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHH#NYSE">SCHH</a>).
ETFs following companies in Europe, Asia, Australia and other developed territories, also known as foreign asset ETFs, can also serve as a safe haven from U.S. volatility. Some of the largest include Vanguard Tax Managed Fund FTSE Developed Markets ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VEA#NYSE">VEA</a>) as well as iShares Core MSCI EAFE ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IEFA#BATS">IEFA</a>).
The new <a href="https://www.bloomberg.com/news/articles/2024-04-01/us-government-debt-risk-a-million-simulations-show-danger-ahead?srnd=homepage-europe&amp;sref=TBDibEcD">report</a> by Bloomberg Economics executed one million simulations tinkering with several variables in order to encompass the widest possible range of future scenarios. In 88% of the scenarios, the debt ratio went up between now and 2034, making the path of U.S. government debt unsustainable.
Bloomberg's team started its analysis by setting off from projections published by the Congressional Budget Office, which warned earlier this year that the fiscal deficit is spinning out of control, even when assuming that inflation will stabilize at 2% and the<a href="https://www.benzinga.com//node/38021818"> Fed will drop interest rates</a>.
The firm used a computational analysis which created a model using "market pricing for future interest rates and data on the maturity profile of bonds," and its results surpassed Congress' predictions, taking U.S. debt into new records over the coming decade.
Now read: <a href="https://www.benzinga.com//node/37839953">Elon Musk Calls For &#8216;Strong-Willed President&#8217; After GOP Rep Warns &#8216;Economic Catastrophe Must Happen&#8217; Before Congress Gets Serious About &#8216;Out-Of-Control Spending&#8217;</a>
Photo: Shutterstock

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National Debt Drama Deepens: Where To Stash Your Cash When The Fiscal Sky Falls

Gold prices are projected to rise to $2,500-$2,600 per ounce, representing an&nbsp;attractive portfolio hedge for equity investors, according to a Bank of America report published this week. 
As the precious metal surged to fresh record highs following the Fed March meeting, investment and ETF strategist Jared Woodard from Bank of America identified two primary engines driving gold&#8217;s unprecedented rally: its hedging quality <a href="https://www.benzinga.com/topic/gold">and central bank purchases. </a>
<h1 class="wp-block-heading">Chart: Gold Hit Record Highs Post-Fed March 2024 Meeting</h1>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="495" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/21115130/image-47-1024x495.png" alt="" class="wp-image-260971" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/21115130/image-47-1024x495.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/21115130/image-47-300x145.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/21115130/image-47-768x372.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/21115130/image-47-1536x743.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/21115130/image-47.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h1 class="wp-block-heading">Key Drivers Sending Gold To Record Highs</h1>
&#8220;Gold&nbsp;has the lowest correlation to the S&amp;P 500 of almost any asset class and&nbsp;can act as a haven if inflation reaccelerates or growth slows&nbsp;later this year,&#8221; Woodard wrote.
Woodard highlighted that &#8220;central banks have been hoarding gold like never before,&#8221; accumulating over 2,100&nbsp;tons&nbsp;in the past&nbsp;two&nbsp;years.
The expert also stressed that unlike previous rallies, the current surge in gold&#8217;s value has largely bypassed retail investors. This is evidenced by a 25% drop in total ETF gold holdings, suggesting that prices could have been even higher if retail participation mirrored that of institutional entities.
This gap presents a potential for increased demand, especially if yields decrease, possibly driving prices to the $2500-$2600 range, as predicted by Bank of America technical analyst Paul Ciana.
<h1 class="wp-block-heading">A Preference for Physical Gold ETFs Over Miners</h1>
When considering how to get exposure to gold, Woodard and his team advocate for physical gold ETFs, such as iShares Gold Trust Micro (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAUM#NYSE">IAUM</a>) and SPDR Gold Minishares Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLDM#NYSE">GLDM</a>), which are less expensive than the SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) and iShares Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAU#NYSE">IAU</a>). 
Physical gold ETFs are also preferred versus miner ETFs, as the former offers a more stable and direct exposure to the commodity&#8217;s value.
Bank of America showed that in the long timeframe, gold mining ETFs have not kept pace with their physical counterparts, partly due to the presence of mining companies disproportionately affected by downturns, diluting potential gains.
The expert recommended prioritizing mining stocks with a higher ratio of upside to downside beta, such as Barrick Gold Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GOLD#NYSE">GOLD</a>) or Newmont Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEM#NYSE">NEM</a>), to capitalize on gold&#8217;s positive trajectory while mitigating risk.
In the mining ETFs arena, Bank of America&#8217;s preference is on the iShares MSCI Global Gold Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RING#NYSE">RING</a>) and the VanEck Gold Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GDX#NYSE">GDX</a>) as it &#8220;offers above average risk-adjusted returns and buy-rated stock exposure&#8221; compared to Sprott Gold Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SGDM#NYSE">SGDM</a>) and VanEck Junior Gold Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GDXJ#NYSE">GDXJ</a>)
Read now: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37870905/feds-dovish-stance-ignites-market-rally-everybody-is-bullish-veteran-wall-street-in">Fed&#8217;s Dovish Stance Ignites Market Rally: &#8216;Everybody Is Bullish,&#8217; Veteran Wall Street Investor Says</a>
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Gold Investors Should Own These ETFs, Says Bank Of America: Why Analysts Expect Gold Spike To $2,600

The price of gold continues <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37577133/gold-stocks-could-gain-in-catch-up-rally-says-peter-schiff-explosive-move-up-cant-b">its record run</a>.
Speculators are piling into the precious metal at a <a href="https://www.benzinga.com/topic/gold">rate not seen since 2019</a>.
The price of gold futures dipped by 0.1% on Monday. But, a series of new record highs were struck last week. Over the five trading sessions of last week, gold added 4.3%
Exchange-traded funds that track the price of gold notched up similar performances. The SPDR Gold Shares ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) gained 4.5% over the week; the iShares Gold Trust ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAU#NYSE">IAU</a>) climbed 4.6%.
Also Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37577133/gold-stocks-could-gain-in-catch-up-rally-says-peter-schiff-explosive-move-up-cant-b">Gold Stocks Could Gain In Catch-Up Rally, Says Peter Schiff: &#8216;Explosive Move Up Can&#8217;t Be Far Away&#8217;</a>
The investment environment behind gold&#8217;s recent performance is a Goldilocks scenario of &#8220;just right&#8221; conditions according to many analysts.
Warren Patterson, head of commodities strategy at ING, said last week&#8217;s higher-than-expected jobless rate increased expectations that the Federal Reserve may be moving closer to looser monetary policy, which would be supportive of gold as the dollar weakens.
He added: &#8220;We expect gold prices to trade higher this year as safe-haven demand continues to be supportive amid geopolitical uncertainty with ongoing wars and the upcoming US election.&#8221;
Bill Baruch, president of commodities brokerage firm Blue Line Futures, said gold&#8217;s move was &#8220;the canary in the mine,&#8221; signifying the start of a &#8220;multi-year bull market in metals.&#8221;
He added: &#8220;Although gold has been in a bull trend since 2019, silver, copper and others have struggled. The tide is shifting. Be ready.&#8221;
<h2 class="wp-block-heading">Bullish Speculative Positions</h2>
The latest weekly speculative positioning data from the Commodity Futures Trading Commission showed net longs in COMEX gold rose by 63,018 lots — the biggest weekly addition since June 2019. It was the third consecutive week of increases and took total net long positions to 131,060 lots.
Gold miners, however, continued to underperform the commodity but, after falling 17.5% between Dec. 28 and Feb. 28 — as measured by the VanEck Gold Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GDX#NYSE">GDX</a>) — gold miners shares might, finally be catching up some lost ground, having gained 15% since Feb. 28.
Newmont Goldcorp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEM#NYSE">NEM</a>), the top holding in the ETF, gained 6.3% last week. Barrick Gold Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GOLD#NYSE">GOLD</a>) gained 5.5% over the week.
Now Read: <a href="https://www.benzinga.com/trading-ideas/long-ideas/24/03/37565192/gold-surges-in-blue-skies-mining-sector-prepares-for-bull-cycle-this-etf-offers-2x-lever">Gold Surges In Blue Skies, Mining Sector Prepares For Bull Cycle: This ETF Offers 2X Leverage During A Run Higher</a>
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Equities

Futures

Gold Speculators Pave The Way For 'Multiyear Bull Market In Metals'

Global physically backed gold ETFs recorded outflows for the ninth consecutive month despite gold trading at <a href="https://www.benzinga.com/news/large-cap/24/03/37547023/gold-shines-brighter-than-ai-driven-semiconductor-stocks-7-mining-stocks-to-watch-with-prices-at-r">fresh all-time highs</a>.
Outflows from these ETFs amounted to $5.7 billion year-to-date, mainly in North America, which accounted for $4.7 billion. The <a href="https://www.gold.org/goldhub/research/gold-etfs-holdings-and-flows/2024/02">data</a> included a $2.9 billion outflow in February, pointing at a potentially accelerating downtrend.
According <a href="https://www.gold.org/news-and-events/press-releases/geopolitical-and-economic-uncertainty-bolster-gold-demand-and-prices">to</a> The World Gold Council, factors contributing to this trend include a strong labor market, higher-than-expected inflation and investor expectations of a potential rate cut by the Federal Reserve. 
The rebound in the 10-year Treasury yield and a stronger dollar further weighed on gold prices and ETF holdings in the region. The strength of U.S. equities also diverted investor attention away from gold.
On a global scale, Asia experienced net inflows for the 12th consecutive month, while other regions faced limited losses. Geopolitical tensions, including conflicts in Ukraine, Israel and the Middle East, along with rising trade protectionism and resource nationalism, contributed to disruptions in global supply chains and drove additional interest in the precious metal.
Now Read: <a href="https://www.benzinga.com/news/large-cap/24/03/37547023/gold-shines-brighter-than-ai-driven-semiconductor-stocks-7-mining-stocks-to-watch-with-prices-at-r">Gold Shines Brighter Than AI-Driven Semiconductor Stocks: 7 Mining Stocks To Watch With The Ore At Record Highs</a>
Despite the sustained outflows from gold ETFs, the price surge of precious metal continues, driven by a jump in speculative betting and <a href="https://www.benzinga.com/markets/asia/24/03/37551998/chinas-gold-buying-spree-continues-16-month-streak-challenges-us-dollar-dominance">physical demand from China</a>. Analysts attribute the rise to weak U.S. economic data and anticipation of a Federal Reserve interest rate cut later in the year.
"Central-bank demand for the precious metal remains historically strong, and that&#8217;s clearly helping drive up the gold price as sovereign nations favor the precious metal as a safe haven against the worsening geopolitical outlook,&#8221; Adrian Ash, director of research at BullionVault said in an interview <a href="https://www.marketwatch.com/story/gold-looks-to-score-another-record-high-settlement-but-its-no-gold-rush-in-the-west-457611e1">for</a> MarketWatch.
While Ash clarified these new all-time highs could be vulnerable to central banks because gold pays no income, he added that "any dip could prove a good opportunity to buy into the underlying strength in gold."
Despite Bitcoin&#8217;s rising popularity, gold and Bitcoin ETFs have seen divergent trends. Gold ETFs faced outflows, while Bitcoin ETFs experienced inflows. Yet, <a href="https://www.marketwatch.com/story/gold-looks-to-score-another-record-high-settlement-but-its-no-gold-rush-in-the-west-457611e1">per</a> Martin Leinweber, a digital assets product strategist at MarketVector Indexes, gold and Bitcoin are not yet substitutes. The fact that the former's ETFs have seen inflows while the latter has seen outflows might just be a coincidence since he believed investors still see Bitcoin as a risky asset.
Investors interested in gold ETFs might Check SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>), iShares Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAU#NYSE">IAU</a>), Abrdn Physical Gold Shares ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SGOL#NYSE">SGOL</a>) or VanEck Gold Miners (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GDX#NYSE">GDX</a>), which invests in global gold miner equities.
Also Read: <a href="https://www.benzinga.com/news/24/03/37535370/ecuador-joins-the-copper-rush-invests-3-2b-in-solgold">Ecuador Joins The Copper Rush, Invests $3.2B In SolGold</a>
Photo: Pixabay

Gold ETFs Diverge From Spot Prices: Record Ninth Consecutive Month Of Outflows

Gold <a href="https://www.benzinga.com/etfs">exchange-traded funds</a> have edged lower so far this year after gaining around 13% in 2024, based on the performance of the most liquid product — the SPDR Gold Shares ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>).
Prices remain above the $2,000 level as geopolitical tensions and expectations of lower interest rates have kept gold bullion buoyant.
On Tuesday, the front month gold futures price was up 0.9% — the 11th-consecutive week of closes above the $2,000 level. But the price has been trending gradually lower.
&#8220;Gold has been trading in a narrow range awaiting clues on the outlook for U.S. interest rates — higher borrowing costs are typically negative for gold,&#8221; said Warren Patterson, head of commodities strategy at ING.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/20113310/newplot-92.png" alt="" class="wp-image-222151" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/20113310/newplot-92.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/20113310/newplot-92-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Also Read: <a href="https://www.benzinga.com/markets/equities/24/02/37183247/choccy-horror-show-hedge-funds-pile-in-as-cocoa-soars-to-record-high">Choccy-Horror Show: Hedge Funds Pile In As Cocoa Soars To Record High</a>
In January, gold-backed ETFs experienced net outflows of $2.8 billion.
It was the eighth consecutive month of outflows, largely due to heavy redemptions in North America, according to the World Gold Council (WGC).
The WGC <a href="https://www.gold.org/goldhub/research/gold-etfs-holdings-and-flows/2024/02">said</a> in its latest Gold ETF Flows report: &#8220;Recent robust US economic data has led investors to reassess their bets on the Fed's first-rate cut in March — the probability priced in by swap markets fell sharply.
&#8220;As a result, both the dollar and the 10-year Treasury yield rebounded, weighing on the gold price and leading to sales of gold ETFs.&#8221;
Patterson at ING added that the total know ETF holdings of gold had continued to decline in February as bets on early rate cuts continued to fade.
&#8220;They have dropped by around 1 million troy ounces in the month so far,&#8221; Patterson said, citing the system for weighing precious metals based on a pound of 12 ounces as opposed to the traditional 16.
<h2 class="wp-block-heading">Gold ETFs Losing Ground</h2>
<ul>
<li>The SPDR Gold Shares ETF has fallen 2.5%</li>
<li>The next most liquid iShares Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAU#NYSE">IAU</a>) is down 2.5%</li>
<li>The Granite Shares Gold Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAR#NYSE">BAR</a>) is also 2.5% lower.</li>
</ul>
Shares in gold miners and their associated ETFs have performed even worse. This is down to costs. Energy prices, mining machinery, permits, labor costs, have all risen. Taken together in percentage terms, the cost of producing gold has risen more than the price of gold in the past decade.
The most liquid among the gold miners-backed ETFs, the VanEck Gold Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GDX#NYSE">GDX</a>) is down 13.4% so far in 2024.
Its top three holdings are:
<ul>
<li>Newmont Goldcorp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEM#NYSE">NEM</a>), down 18% in 2024</li>
<li>Barrick Gold Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GOLD#NYSE">GOLD</a>), down 19% and </li>
<li>Agnico Eagle Mines Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AEM#NYSE">AEM</a>), down 11.5%.</li>
</ul>
Read Now: <a href="https://www.benzinga.com/24/02/36897735/is-now-the-time-to-own-underperforming-gold-mining-stocks-one-trend-is-likely-to-reverse">Gold Mining Stocks May See One Trend &#8216;Likely To Reverse&#8217;</a>
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Gold ETFs Suffer Outflows, Await Clues Concerning US Interest Rates

After the stunning rally that ended 2023, investors <a href="https://www.benzinga.com/news/earnings/24/01/36466738/us-stocks-set-to-open-weaker-as-traders-eye-key-main-street-events-analyst-sees-buying-opportunity-">started 2024 with sobering losses</a> that appeared to reflect the <a href="https://www.benzinga.com/news/24/01/36458551/hamas-deputy-leader-killed-in-suspected-israeli-drone-strike-in-beirut-oil-prices-fall">darkening geopolitical outlook</a>.
There were some heavy losses across Asia on Tuesday — particularly in China, where weak home sales data undermined the property sector. In the U.S., the mega-cap Dow Jones Industrial Average eked out narrow gains, but both the S&amp;P 500 and NASDAQ indexes lost ground.
The SDPR S&amp;P 500 Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), the exchange traded fund that tracks the S&amp;P 500 fell 0.6% on Tuesday and the Invesco QQQ Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NYSE">QQQ</a>) which tracks tech stocks on the NASDAQ 100 fell 1.7%. Premarket trading on both ETFs indicated opening losses on Wednesday.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="650" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/03090258/newplot-13-1.jpeg" alt="" class="wp-image-173318" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/03090258/newplot-13-1.jpeg 650w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/03090258/newplot-13-1-300x300.jpeg 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/03090258/newplot-13-1-150x150.jpeg 150w" sizes="(max-width: 650px) 100vw, 650px" /></figure>
Also Read: <a href="https://www.benzinga.com/news/24/01/36458551/hamas-deputy-leader-killed-in-suspected-israeli-drone-strike-in-beirut-oil-prices-fall">Hamas Deputy Leader Killed In Suspected Israeli Drone Strike In Beirut: Oil Prices Fall</a>
<h2 class="wp-block-heading">Geopolitical Gloom Deepens</h2>
The news from the Middle East and Red Sea were certainly sobering. Maersk (OTC:<a class="ticker" href="https://www.benzinga.com/stock/AMKBY#OTC">AMKBY</a>), the shipping company which last week had decided to resume routes through the Red Sea, suffered another attack by Houthi rebels. U.S. warships engaged with enemy vessels, while Iran sent a cruiser to the region.
It was later reported that Israel<a href="https://www.benzinga.com/news/24/01/36458551/hamas-deputy-leader-killed-in-suspected-israeli-drone-strike-in-beirut-oil-prices-fall"> had killed the deputy leader of Hamas</a> in a drone strike on a building in Beirut, the capital of Lebanon.
This incident, being Israel&#8217;s first incursion outside of Gaza in this conflict, raises concerns about the potential involvement of Lebanese Hezbollah militants and their allies, including Iran and Syria, further intensifying regional tensions.
Yet the market action didn&#8217;t feel like a reaction to geopolitical events. Gold prices fell, as the tradition safe haven asset did not attract spooked buyers. The iShares Gold Trust ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAU#NYSE">IAU</a>) fell 0.2%.
&#8220;Geopolitical tensions remain high but do not seem to be having a direct market influence as both gold and oil are trading lower,&#8221; said Marc Chandler at Bannockburn Global.
<h2 class="wp-block-heading">Equity Losers In Sell-Off</h2>
Looking at the losers on the S&amp;P 500 — including the Magnificent Seven stocks, which all lost between 1% and 5% — and it was a list of the best performers of 2023.
&#8220;I wouldn&#8217;t have been surprised to see profit taking — you&#8217;ve got a lot of portfolio managers who underperformed their index, so they&#8217;re re-orientating their portfolios towards a less hawkish Fed — they need to allocate towards stocks,&#8221; said Tom Lee at Fundstrat, in an interview on CNBC on Tuesday.
The largest downturns on the S&amp;P 500 on Tuesday were seen in the three cruise line operators: Norwegian Cruise Line Holdings (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NCLH#NYSE">NCLH</a>) fell 8.6%, Royal Caribbean Cruises (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RCL#NYSE">RCL</a>) lost 7.2% and Carnival Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CCL#NYSE">CCL</a>) shed 6.7%.
During 2023, only three stocks — including Mag7 giants Nvidia (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) up 227%, and Meta Platforms (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) up 172% — outperformed Royal Caribbean, which gained 128% over the year. Carnival wasn&#8217;t far behind with an annual gain of 98%, while NCLH rose by 47%.
Another big story of 2023 — the growth of artificial intelligence — drove semiconductor stocks to cyclical highs, and many of these stocks were among Tuesday&#8217;s big losers.
AMD (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) fell 6%, Intel (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTL#NASDAQ">INTL</a>) shed 4.9% and Applied Materials (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMAT#NASDAQ">AMAT</a>) lost 4.8%.
<h2 class="wp-block-heading">What To Expect Ahead In 2024</h2>
Premarket trading on Wednesday indicated the likelihood of further equity losses — particularly in the stocks mentioned above. 
But the selling has not been broad based. There were plenty of gainers, particularly in the pharmaceuticals, healthcare and financial sectors.
Capex has risen during 2023, indicating companies feel confident about their earnings growth in 2024 — and earnings will be the ultimate driver, along with Federal Reserve policy, as the year advances.
Thus, the fourth-quarter 2023 earnings season, which kicks off in a few weeks, will be key for investment decision-making as companies provide further details on their outlooks for the coming year.
Now Read: <a href="https://www.benzinga.com/general/entertainment/24/01/36456513/new-year-resolution-stocks-can-getting-fitter-be-a-winner-on-the-stock-market">New Year Resolution Stocks: Can Getting Fitter Be A Winner On The Stock Market?</a>
Photo: Shutterstock

AMAT

AMKBY

INTL

NCLH

NVDA

A Glitch In The Rally? Cruise Operators And Chip Stocks Targeted In Profit Taking

Robert Kiyosaki, popular for his best-selling book &#8220;Rich Dad, Poor Dad,&#8221; on Sunday commented on the pullback in the <a href="https://www.benzinga.com/money/how-to-buy-gold-and-silver">precious metals gold and silver.</a>
What Happened: Gold and silver pulled back by $10 and $0.14 per troy ounce, respectively, Kiyosaki said in a post on X, formerly Twitter.
The precious metals had a strong runup in the aftermath of the Israel-Hamas conflict, riding on the back of their safe haven appeal in the event of geopolitical tension. Since the crisis in the Middle East started on Oct. 7, gold futures have been on a broader uptrend. From the sub-$1,900 level, gold futures rose as high as $2,009.20 on Friday, a gain of about 9%. 
Since then, gold futures have slipped back. An ounce of gold is currently trading at $1,991.95, down 0.12%, following nearly A 0.5% pullback on Sunday.
Silver futures have also followed a similar trajectory and they fell 0.88% on Sunday and lost an incremental 0.30% to $23.418 in Asian hours on Monday.
See Also: <a href="https://www.benzinga.com/money/best-commodities-to-buy">Best Commodities To Buy</a>
Not A Buffett Fan: After gold and silver lost some of their luster, Kiyosaki said, &#8220;This is where &#8216;Dollar Cost Averaging&#8217; pays off.&#8221;
Dollar-cost averaging is a strategy of investing the same amount of money in a target security at regular intervals over a certain period of time. This strategy is seen as ideal for uncertain times, helping to reduce the impact of volatility on portfolios.
&#8220;Rather than pretend to be <a href="https://www.benzinga.com/general/movers-shakers/21/08/17298128/warren-buffett-turns-91-a-highlight-for-each-decade-of-his-life-1">Warren Buffet picking bottoms </a>I am an average investor &#8216;accumulating&#8217; the asset I want for the long term,&#8221; Kiyosaki said. He noted that he has been accumulating gold, silver, Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>), and real estate for years.
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Gold dropped $10 today. Silver 14 cents. This is where "Dollar Cost Averaging" pays off. Rather than pretend to be Warren Buffet picking bottoms I am an average investor "accumulating" the asset I want for the long term. I have been accumating gold, silver, BC and real estate…
&mdash; Robert Kiyosaki (@theRealKiyosaki) <a href="https://twitter.com/theRealKiyosaki/status/1716298498638024822?ref_src=twsrc%5Etfw">October 23, 2023</a></blockquote>
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Highlighting the success of his strategy, the best-selling author noted that the gold coin, which he first bought at $50, has now appreciated to $2,000.
&#8220;You can become rich by being an average investor, using dollar cost averaging to get rich,&#8221; he said.
The iShares Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAU#NYSE">IAU</a>) was edging up 0.05% to $37.49 in premarket trading on Monday, while the iShares Silver Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLV#NYSE">SLV</a>) fell 0.47% to $21.30, according to<a href="https://benzinga.grsm.io/lxquj26b2sag"> Benzinga Pro data.</a>
Read Next: <a href="https://www.benzinga.com/money/are-precious-metals-a-good-investment">Are Precious Metal A Good Investment</a>

'Rich Dad Poor Dad' Author Robert Kiyosaki Reveals His 'Average' Investment Approach: Not Exactly Warren Buffett's 'Bottom-Picking'

You might think bonds or T-bills look intriguing right now, with some offering nearly 5% back guaranteed. Or maybe you&rsquo;ve been looking at Walt Disney Co&rsquo;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dis#NYSE">DIS</a>) stock, down 25% in the last year. But, according to DataTrek co-founder Nick Colas, it&#39;s time to bypass bonds and struggling stocks; gold is the <a href="https://www.benzinga.com/topic/gold">investment to focus on.</a>
Colas points out that despite the fact that gold has underperformed the S&amp;P 500 in the United States, it has held up better than most global stocks and equities. Colas also points out that demand for gold comes from different sources, including central banks wanting to bolster their balance sheets.
Also Read:&nbsp;<a href="https://www.benzinga.com/news/23/08/34100924/is-cathie-wood-the-next-warren-buffett-apple-tesla-define-their-investment-strategies">Is Cathie Wood The Next Warren Buffett? Apple, Tesla Define Their Investment Strategies</a>
Colas argues that because of an increase in demand for gold from central banks throughout the world, gold prices should steadily increase. Colas says that any increase in global geopolitical tensions could help push gold prices even higher.&nbsp;
&ldquo;Now, if you think we&#39;re going to have an outbreak of global peace, then gold is probably not a great trade, because central banks will see much less interest and not want to own as much gold,&rdquo; Colas said in a recent <a href="https://datatrekresearch.com/why-were-bullish-on-gold-2/" style="text-decoration-line:none">YouTube video and blog post.</a> &ldquo;However, the current situation feels quite different. We have geopolitical tensions with Russia, with China. Turkey has its own issues.&rdquo;
How To Trade Gold: If you want to go long gold but don&rsquo;t want to go out and buy physical gold, there are plenty of ETFs and other funds available on U.S. markets that provide solid gold exposure. Here are five gold ETFs that could be good options for longing the precious metal:&nbsp;
SPDR Gold Trust (ARCA:GLD)
SPDR Gold MiniShares Trust (ARCA:GLDM)
iShares Gold Trust (ARCA:IAU)
VanEck Gold Miners ETF (ARCA:GDX)
Goldman Sachs Physical Gold ETF (BATS: <a class="ticker" href="https://www.benzinga.com/stock/aaau#BATS">AAAU</a>)
Now Read:&nbsp;<a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/08/34118055/grayscales-bitcoin-etf-shifts-sands-of-crypto-regulation-3-analysts-weigh-in">Grayscale&#39;s Bitcoin ETF Ruling Shifts Sands Of Crypto Regulation: 3 Analysts Weigh In</a>
Photo: Shutterstock

Forget Stocks And Bonds - Here's Why Gold Is The Best Investment Right Now

<ul>
<li>Gold rose 0.16% to $1,940.15 at 04.30 AM ET</li>
<li>Silver rose 0.21% to $23.328 at 04.30 AM ET</li>
</ul>

Econ #s

SIVR

Gold And Silver Prices Edge Higher Today, Ahead Of US Inflation Data

Otavio Costa, a portfolio manager at Crescat Capital, does not agree with the notion that gold has ceased to be a good hedge during bad times and believes the yellow metal is in the early stages of <a href="https://www.benzinga.com/news/23/06/33000428/gold-edges-up-on-russias-internal-chaos-soft-dollar-whats-capping-more-gains">its re-emergence as a safe haven asset</a>.
Costa highlighted his disagreement citing a Bloomberg <a href="https://www.bloomberg.com/opinion/articles/2023-06-28/gold-is-no-longer-a-good-hedge-against-bad-times">opinion</a> piece by George Mason University professor Tyler Cowen which argued that the yellow metal has become a cyclical asset and is "no longer a useful harbinger of social and economic collapse."
Also Read: <a href="https://www.benzinga.com/best-penny-stocks">Best Penny Stocks</a>
"It is completely backward-looking and dismissive of what appears to be the early stages of gold re-emerging as the ultimate haven asset. Given the dire levels of global debt, foreign central banks are compelled to prioritize enhancing the quality of their international reserves to support their monetary systems," Costa <a href="https://twitter.com/TaviCosta/status/1674612624691183616">said</a> in his tweet.
The expert pointed out that central banks function similarly to traditional businesses that require high-quality assets on their balance sheets to establish financial stability. 
"Ultimately, other notable institutions such as pension and endowment funds will likely follow suit. By the end of this decade, conventional 60/40 portfolios will probably become much more balanced with the inclusion of other asset classes like gold," Costa said.
Central banks have been increasing their holdings of gold in their reserves in recent times — they added a whopping 1,136 tonnes of the yellow metal to their stockpiles in 2022, which is by far the most of any year in records going back to 1950, said a Reuters report published in February, citing the World Gold Council.
Price Action: Spot gold was trading 0.28% lower during Friday&#8217;s Asian trade at $1,902 per ounce in the wake of strong U.S. economic data and Federal Reserve Chair Jerome Powell asserting there need to be two more rate hikes to bring inflation under control. 
"Inflation pressures continue to run high, and the process of getting inflation back down to 2% has a long way to go," <a href="https://www.benzinga.com/news/23/06/33070776/peter-brandt-congratulates-fed-for-hawkish-stance-says-another-100-basis-points-hike-would-do-wonder">Powell had said</a>.
The SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) fell 1.4% in the last five days while the iShares Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAU#NYSE">IAU</a>) lost 1.39% during the period.
Read Next: <a href="https://www.benzinga.com/news/23/06/33073408/jim-cramer-warns-investors-against-buying-stocks-in-one-go-nobody-has-that-kind-of-insight">Jim Cramer Warns Investors Against Buying Stocks In One Go: &#8216;Nobody Has That Kind Of Insight&#8217;</a>

Has Gold Lost Safe-Haven Appeal? Portfolio Manager Otavio Costa Says That's 'Backward-Looking And Dismissive' Thinking

Gold prices inched higher during the Asian trading session on Monday&nbsp;<a target="_blank" href="https://www.benzinga.com/news/23/06/33000152/how-oil-markets-reacted-after-wagner-group-attempted-coup-against-vladimir-putin-in-russia" rel="noreferrer noopener">after an attempted coup</a>&nbsp;by&nbsp;Wagner&nbsp;Group&nbsp;mercenaries against Russian President&nbsp;Vladimir Putin&nbsp;over the weekend, which increased demand for safe-haven assets.
During Monday afternoon&#8217;s Asian trading session, spot gold traded 0.2% higher at $1,925 per ounce. The weakening of the dollar also contributed to the bullish sentiment in gold. However, the upside potential for the commodity remained limited as Wagner chief Yevgeny Prigozhin abruptly halted his advance toward Moscow.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/money/gold-ira-kit" rel="noreferrer noopener">Gold IRA Kit</a>
One factor constraining further gains in gold prices is the fear of extended rate hikes by the Federal Reserve. Despite the pause in rate hikes during the Fed&#8217;s June policy meeting, concerns have grown as Chair&nbsp;Jerome Powell&nbsp;<a target="_blank" href="https://www.benzinga.com/economics/macro-economic-events/23/06/32861662/powell-hits-the-brakes-after-10-straight-interest-rate-increases-but-fed-signals-" rel="noreferrer noopener">indicated the possibility</a>&nbsp;of raising rates by an additional 50 basis points this year.
Additionally, higher-than-expected inflation and a surprise 50 basis points rate hike by the Bank of England have unsettled investors, leading them to consider the possibility of prolonged rate increases in the United States.
Ole Hansen, Head of Commodity Strategy at Saxo Bank, pointed out that exchange-traded funds have been reducing their gold holdings recently. 
&#8220;Four weeks of ETF selling accelerated last week, when holdings were cut by 17 tons, the most since November, reducing total holdings to a three-month low at 2899 tons. Another peak rate delay following Powell&#8217;s testimony driving XAUUSD below support towards $1900,&#8221; he said in a tweet.
The SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) closed 0.28% higher on Friday while the iShares Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAU#NYSE">IAU</a>) gained 0.25%, <a href="https://benzinga.grsm.io/xjrx9r9ce0uu">according to Benzinga Pro</a>.
‘Rich Dad, Poor Dad' author Robert Kiyosaki <a href="https://www.benzinga.com/news/23/06/33000022/prepare-for-crash-warns-rich-dad-poor-dad-author-robert-kiyosaki-after-eye-opening-restaurant-encoun">has warned investors</a> about the possibility of an economic downturn and advised them to buy gold, silver and Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>).
Read Next: <a href="https://www.benzinga.com/news/23/06/33000234/california-democrat-ro-khanna-questions-feds-2-inflation-target-why-is-it-sacrosanct-as-opposed-to-s">California Democrat Ro Khanna Questions Fed&#8217;s 2% Inflation Target: &#8216;Why Is It Sacrosanct As Opposed To Setting It At 3%&#8217;</a>

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iShares Gold Trust Shares of the iShares Gold Trust

Overview

iShares Gold Trust Shares of the iShares Gold Trust (ARCA:IAU), Quote.Headers.trade-ideas