Whatever the reasons, gold shone brightly for a while. It blasted through US$3,000 an ounce in March 2025, then US$4,000 in October, then US$5,000 in January 2026, when it surged to an intraday high of US$5,626.80 an ounce.
As the economist Milton Friedman famously summarized, “Inflation is always and everywhere a monetary phenomenon.” It is an artificial expansion of the intermediary medium, causing the nominal price of real commodities to skyrocket.
The US dollar became the world’s primary reserve currency due to the economic devastation of World War II and was cemented by the 1944 Bretton Woods Agreement. Because the US mainland was untouched by war and held most of the the world’s...
New Federal Reserve Chair Kevin Warsh views inflation primarily as a monetary phenomenon, adhering to the Milton Friedman dictum that persistent price rises are a choice made by the central bank.
Reuters had this to say about the ongoing record setting current streak of inflation. “The worst U.S. inflation outbreak in a generation turns five years old this month, a defining economic shock that is still driving policy debates,...
Global bond yields are reaching frightening levels due to the continued war in Iran and the effective closure of the Strait of Hormuz. Continued high oil prices and the threat of reverberating inflation are causing investors to demand...
Gold has an inverse relationship with US Treasury yields. As yields rise, gold normally falls, as interest-bearing assets become more attractive compared to gold, which offers neither interest nor a dividend.
Gold and silver have largely defied traditional safe-haven expectations during the 2026 Iran conflict, experiencing significant volatility and price declines rather than consistent rallies. Gold fell over 10% and silver over 20% in March...
Stagflation is an economic event in which the inflation rate is high, economic growth rate slows, and unemployment remains steadily high.
Inflation, higher interest rates and a strong dollar are bad for gold prices. On the other hand, war, geopolitical stress, bad job reports and stagflation are good for gold. The consensus on gold prices for 2026 is cautiously bullish, with...