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.
