Cathie Wood Warns of Gold Rally’s Vulnerability Amid Shifting Macro Landscape
Cathie Wood has raised concerns about gold's parabolic rally, noting its detachment from fundamental drivers. The metal's market cap relative to M2 money supply has hit historic extremes—surpassing both the inflationary 1980s and the deflationary 1930s. Yet current conditions show neither runaway inflation nor economic collapse.
10-year Treasury yields have retreated from 5% to 4.2% since late 2023, while dollar strength persists. "The US economy today looks nothing like the 1970s or 1930s," Wood observed, questioning gold's momentum despite central banks' gradual dollar diversification.
Currency dynamics may prove decisive. Any renewed USD appreciation could pressure gold prices further, challenging the metal's recent speculative surge.