Insignia Consultants | Gold's current rally: echoes of the 1980s with a more sustainable core
Gold's current rally: echoes of the 1980s with a more sustainable core
LONDON, April 8 (Reuters) - Gold's latest gallop to all-time highs has drawn comparisons with the last time political and economic turmoil were the main drivers of record prices, back in 1980. But market players say the nature of this rally - and potentially its ability to endure - look different.
With tensions running high between historic allies over U.S. tariffs, global trade, and wars in Ukraine and the Middle East, big powers look unlikely to pull together swiftly this time to resolve the issues driving interest in bullion as a haven from risk, analysts say.
The metal's surge above $3,000 an ounce, driven most recently by U.S. President Donald Trump's new round of tariffs on trading partners, has been the first time in a long time that geopolitics and economic uncertainty have served as the top factors moving the gold market, HSBC analyst James Steel said.
Spot gold hit a record $3,167.57 per troy ounce last week and is up 16% so far this year, on top of 27% growth in 2024. While the market's trajectory won't be linear, analysts say gold's entry into uncharted territory looks more sustainable than the one seen 45 years ago.
