The trouble with uncertainty is that you never know what to expect. When Donald Trump returned to the White House, many investors prudently braced for the unexpected, but as it turns out, we got a different kind of unexpected than anyone anticipated.
Take this Reuters poll, conducted in November 2024, which found that equity strategists predicted that: “the S&P 500 will rise over 8% between now and end-2025 as US interest rate cuts and potentially less regulation under President-elect Donald Trump extend the market’s strong run.”
Anything can happen between now and December, but current investor sentiment about US equities is not exactly exuberant. With appetite for US assets muted, traders are increasingly seeking out safe haven assets.
In that context, one asset is doing what it’s supposed to: gold. Its steady climb over the past year has been one of the few predictable business narratives.
The shifting meaning of uncertainty
Why are investors turning to gold? The obvious answer is that the current historical moment has been characterised by a persistent undertone of uncertainty. But the causes and meanings of that uncertainty keep shifting.
Not too long ago, investors sought out gold as an apparent hard asset amid inflationary fears and as a hedge against geopolitical risk. Now, with the looming possibility of recession, many see gold as a source of stability when some investors have become bearish on the dollar and long-term Treasuries.
In other words, we’ve gone from worrying about an overheated American economy driving global inflation to hoping erratic trade policy doesn’t cause a global slowdown.
And yet, whatever your interpretation of the causes of volatility, gold has proven a safe bet.
Indeed, following Trump’s criticism of Jerome Powell (which some took as an implicit threat to try fire the Federal Reserve Chair) gold briefly broke $3,500 per ounce to reach an all-time high.
Flexible gold options: The Finalto edge
Where will the gold price go from here? It would go against the spirit of this post to hazard a guess.
One thing is clear, amid increased volatility, traders need powerful, flexible and reliable gold trading solutions. The markets may be uncertain, but that’s no reason why your gold offering should be.
Finalto’s deep liquidity network enables us to provide market-leading pricing on gold, as well as silver and other metals. Our liquidity team applies quantitative analytics via our sophisticated technology to perform automated and detailed liquidity analysis to ensure clients receive the best possible pricing.
And our flexible offering gives you more freedom to access the market your way. Our market-leading gold product suite is a convenient way to hedge and trade positions directly in grams and taels without unit conversion:
- Gold quoted in grams, ounces and taels
- Multi-currency trading of gold in USD, EUR, GBP, AUD, CNH, SGD, THB & TRY
- One of the broadest ranges of gold contracts, tailored to local market conditions
- Exceptional liquidity & bespoke pricing
In uncertain times, you need a partner you can trust. Get in touch with Finalto to secure an optimised gold strategy and to our award-winning liquidity, risk management, data and technology solutions.
All opinions, news, research, analysis, prices or other information is provided as general market commentary and not as investment advice and all potential results discussed are not guaranteed to be achieved. The information may have been derived from publicly available sources, company reports, personal research, or surveys. Past performance is not indicative of future performance. Trading carries risk of capital loss. Service available to professional clients only.
