5 December 2023
Gold reached a new record high of $2,111, buoyed by its status as a traditional safe-haven asset and expectations of U.S. rate cuts. A weaker dollar has also made gold more attractive to non-dollar buyers. Notably, non-aligned and BRICS nations have been increasing their gold reserves while selling off U.S. treasuries. Gold’s long-term performance, its 3000% rise over the last 50 years compared to stocks, and its resilience during financial instability make it a compelling component of a diversified portfolio. With ongoing geopolitical tensions, rising national debts, and political uncertainties, gold’s role as a stable, decorrelated safe-haven investment is more relevant than ever in today’s uncertain financial landscape.