Gold Soars as Confidence in Dollar Wanes—Does $GLD Trump All?
Gold, often traded through the ETF GLD on NYSE Arca in the commodities/precious metals sector, is pulling away as global trust in the U.S. dollar and monetary system fades. Spot gold recently surpassed $3,100/oz, reaching highs above $3,123, marking a 19% gain just this quarter.
While U.S. equities struggle and bond yields tremble, gold’s rally reflects a broader rebalancing. The DXY dollar index has slid about 4% this year, weakening its safe-haven status. Meanwhile, global central banks, especially in Asia, continue aggressive gold buying—setting up persistent demand and pushing reserves higher.
Investors are now watching for how far gold can climb. Analysts at Sprott report that gold “gains ground as faith in the dollar erodes,” noting that a 1‑ounce Costco gold bar bought at ~$2,400 a year ago would be worth ~$3,390 today—a 41% jump.
This surge reveals deeper dynamics: eroding confidence in U.S. debt and monetary policy—a shift toward gold as a stable, liability-free asset. Experts highlight that gold carries no counterparty risk, remains highly liquid (~$229 billion/day turnover), and is increasingly being seen as the anchor for a new global monetary order.
Today's takeaway: as trust in traditional finance falters, gold—especially via GLD—emerges not only as a safe haven, but potentially the centerpiece of a new monetary era.