Gold Set for Unprecedented Surge with Central Bank Support and US Dollar Struggles

Analysts from The Kobeissi Letter highlight rising uncertainty as the key driver behind gold’s price surge. Gold has outperformed the S&P 500 since 2020, gaining 109% compared to the S&P’s 74%.

This shift is driven by a “flight to safety,” with record net inflows of $8 billion into gold funds recently, and a four-week average of $4 billion. Central bank purchases remain strong, with gold holdings now making up 18% of global reserves, the highest in 26 years. Meanwhile, the U.S. Dollar Index has dropped nearly 10% since the trade war began, making gold more attractive to foreign investors.

Clever Robot News Desk 9^th May 2025