The geopolitical landscape continues to be volatile. Historically, gold has benefited from 'safe haven' flows during periods of global instability. Are current events providing a sustained bid, or is the market desensitized to some extent?
I disagree. The consistent underlying bid for gold, even when equities are strong, suggests there's a constant flow of capital seeking safety. It's just not always front-page news.
Could it be that 'geopolitical risk' now includes economic risk more directly? The inflation concerns and central bank actions might be a bigger driver for gold than traditional conflict narratives.
I think the safe-haven argument still holds, but the moves are less dramatic than they used to be. Other factors like interest rates seem to have more immediate impact.
Good question. I've been watching gold closely and it feels like the market is indeed more 'used to' instability. We need a truly major event for a significant breakout, not just persistent low-level friction.