Gold Soars to 2-Week Peak as Traders Brace for Economic Storm Clouds
Gold bulls are back in charge as prices hit their highest level in 14 days—just as Wall Street starts pricing in ugly economic data ahead.
Why the rush to shiny metal? Because nothing says 'safe haven' like a market betting against the Fed's rosy forecasts.
Meanwhile, crypto traders eye the action: 'When gold pumps, it's either inflation panic or recession fear. Both are rocket fuel for Bitcoin.'
Bonus jab: Funny how gold's 'store of value' narrative only works when traditional finance starts smelling blood.
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“A reopening WOULD restore data flow and revive expectations for a December rate cut, but more importantly it shifts market focus back to the deteriorating U.S. fiscal outlook,” said analysts at Saxo Bank.
Gold Rises as Federal Jobs and Inflation Data Loom
Gold thrives during times of economic uncertainty given its status as a SAFE haven asset. When the government reopens, federal agencies will be able to resume publishing inflation and labor data. As a result, gold could benefit if the data points to persistent inflation and continued weakness in the labor market.
Last week, outplacement firm Challenger, Gray & Christmas reported 153,074 job cuts in October, up by 175% year-over-year and marking the highest total for the month since 2003. Gold’s rally could continue as investors weigh the impact of new economic data once the government reopens.
