Gold’s recent price surge to over $3,000 an ounce, driven by economic uncertainty and de-dollarization efforts led by China, has propelled it to unprecedented heights. Historically, gold has served as a hedge during stock market downturns, offering diversification due to its low correlation with equities. However, with prices at all-time highs, past trends suggest that future returns may be limited as prices could revert to the mean. Yet, structural shifts, such as a potential decline in the U.S. dollar’s dominance as the global reserve currency, might redefine gold’s role, presenting investors with both opportunities and risks in an uncertain financial landscape.
Revisiting the Golden Dilemma: Gold’s Future in Uncertain Times
