Benefits of gold’s enduring resilience as relevant as ever, says World Gold Council

By: Martin Creamer – Mining Weekly

“Importantly, the core reasons for considering alternative assets such as gold remain largely unchanged.

“First, equities appear complacent. US equities have posted remarkable gains in recent months, reigniting concerns about valuation excess and concentration risk,” he adds, with investors facing a market that feels euphoric on the surface but remains fragile underneath.

“Should economic pressures mount,  investors may increasingly seek refuge in safe-haven assets, with gold standing out as a historically resilient option.”

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“Second, bond markets remain uncertain. The US Federal Reserve officially resumed its easing cycle in September, cutting the federal funds rate by 25 basis points in response to a cooling labour market  – an action widely anticipated by markets.

“However, US long-term yields could face renewed upward pressure if tariffs and reshoring efforts drive domestic costs higher, complicating the Fed Reserve’s inflation target.

“At the same time, long-term treasuries remain exposed to concerns over the Federal Reserve’s independence and the US government’s sizeable fiscal funding needs.

“Against this backdrop, gold’s appeal as a hedge against both equity and bond market instability is growing, although risks exist.”