Gold headwinds return

Wisdom Tree/Nitesh Shah/February 2023

photo image of American Eagle gold and silver bullion coins“Despite some of the near-term setbacks for gold,” it says, “we should remember that the bond yield curve is the most inverted since the early 1980s. Gold has historically performed well during bear market flattening inversions. Historically, yield curve inversions are followed by recession (albeit with long lags). Markets are fearing that central banks could easily overdo the tightening in their inflation fight. Gold is often highly sought after in periods of economic and financial uncertainty as the metal presents strong defensive hedge qualities.”
USAGOLD note: In this analysis, Wisdom Tree, the Dublin-based investment firm, warns of headwinds for gold but reminds us that those same headwinds create the need for a safe haven.
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