South Korea’s Weak Won Struggles as Retail Investors Pour Money Into U.S. Stocks 
Oil Prices Slip as U.S.–Iran Talks Ease Supply Disruption Fears 
Silver Prices Plunge in Asian Trade as Dollar Strength Triggers Fresh Precious Metals Sell-Off 
Oil Prices Slide on US-Iran Talks, Dollar Strength and Profit-Taking Pressure 
Australia’s December Trade Surplus Expands but Falls Short of Expectations 
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election 
Gold and Silver Prices Slide as Dollar Strength and Easing Tensions Weigh on Metals 
Fed Governor Lisa Cook Warns Inflation Risks Remain as Rates Stay Steady 
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
Dollar Steadies Ahead of ECB and BoE Decisions as Markets Turn Risk-Off 
Vietnam’s Trade Surplus With US Jumps as Exports Surge and China Imports Hit Record 
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns 
U.S. Stock Futures Slide as Tech Rout Deepens on Amazon Capex Shock 
Global Markets Slide as AI, Crypto, and Precious Metals Face Heightened Volatility 
U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains 
China Extends Gold Buying Streak as Reserves Surge Despite Volatile Prices 
Gold prices soared past $3,000 per ounce last week, hitting a historic high fueled by rising safe-haven demand and global de-dollarization. Investors are flocking to gold as geopolitical and economic uncertainties rise, reinforcing its status as a perceived store of value.
Campbell Harvey, a finance professor at Duke University, linked the surge to “de-dollarization and safe-haven demand.” He pointed out that China has increased its official gold reserves by 15% since November 2022, likely to enhance confidence in the yuan. Harvey referenced the Economic Policy Uncertainty Index, which measures policy-driven economic instability, noting that “gold always shows up on that list” of protective assets.
However, gold’s historical performance tells a mixed story. While it gained during events like Black Monday (1987), the Gulf War (1990), and the Great Recession (2007–2009), it failed to deliver during the Asian financial crisis (1998) and the 2020 COVID-19 market crash. From 2021 to 2022, gold prices declined by over 6% despite surging inflation, underscoring its limitations as an inflation hedge.
Investors should also be cautious when investing through gold ETFs. The SPDR Gold Shares (NYSE:GLD), the largest physical gold-backed ETF, has shown tracking discrepancies. Over the past five years, GLD’s annual price return was 12.2%, while its net asset value (NAV) rose 11.5%. Though this gap recently favored investors, it could reverse, potentially impacting returns.
While gold remains an attractive asset in uncertain times, its inconsistent performance and risks tied to ETF structures mean investors should weigh their options carefully. Despite its allure, gold may not always be the fail-safe hedge it appears to be.
