Irrational Allocation and Gold - SchiffGold.com
Irrational Allocation and Gold - SchiffGold.com
Source: SchiffGold.com
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DW NOTE
Gold fell 21.5% from its January high because the Fed raised rates in mid-September — the first hike since 2023 — and suddenly four thousand dollars an ounce didn't look like insurance, it looked like a non-yielding asset in a rising-rate regime. The Strait of Hormuz has been effectively closed for two days, oil is up 42% year-over-year, and gold is still selling off. That's not irrational allocation — that's the market pricing in exactly what the Fed told it to price in.