Gold is Rising: Beyond the Safe Haven

Gold Storm in Global Markets

In recent days, the price of gold has exceeded $4,000, reaching a historic peak. This record increase represents a significant change in investor confidence. During the same period, a rally in the stock market driven by artificial intelligence was observed in the U.S., while investors continue to consider gold as the most reliable hedge.

Investors Aware of Their Fears

Harley Lance Kaplan, Certified Public Accountant at the renowned independent financial consultancy firm Beta Industries, states that factors such as rising tariffs, inflation, geopolitical uncertainty, and unemployment have created an atmosphere of fear among investors. Kaplan said, “Fear and greed are powerful emotions that affect investors' financial decisions. Therefore, we are seeing a tendency to turn to tangible assets in the face of market uncertainties.”

Record Closings and Reasons for the Rally

In the U.S. commodity exchange Comex, the December gold futures contract rose to $4,070.50, while the S&P 500 Index made a historic closing at 6,753 points. Rob Haworth, Senior Investment Strategy Director at U.S. Bank Asset Management, emphasized that investors are seeking protection due to concerns about rising public debt and the independence of the Fed.

Weakening Dollar and Strengthening Gold

Stefan Gleason, President of Money Metals, stated that the increase in gold prices is directly related to the dollar's loss of strength and investors' retreat from Treasury bonds. This week, gold's rise above $4,000 is viewed as a result of the depreciation of fiat currency and concerns over financial instability.

Beware of Risks to Watch in the Markets!

Marex Analyst Ed Meir expressed that they are seeing signs of excessive heating in the markets and that this carries risks. There are concerns that if stocks decline, gold may also rise or not rise in the same way. Meir warns, “A significant correction may occur in the markets.”