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.
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.
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.