Turning to gold, Norman highlights the traditional inverse relationship between gold prices and treasury yields, noting that lower yields and a weaker U.S. dollar typically support gold. He identifies three main drivers for gold’s continued rally: falling yields and a depreciating dollar, waning confidence in U.S. assets making gold a preferred safe haven, and central banks accelerating diversification away from dollar reserves. However, he warns that the U.S.’s willingness to risk its financial credibility to manage its debt could spark a crisis of confidence, further boosting gold as a “sum of all fears” indicator. In this environment, gold’s recent surge is seen as a warning signal about the underlying fragility of the global financial system.
