Gold's Historic Rally Faces Unprecedented Risks Amid Rising Uncertainty

Gold prices have been steadily increasing over the past few months, with investors flocking to the safe-haven metal amid macroeconomic uncertainty. However, market strategists warn that this trend may be reaching a critical juncture.

The Chief Economist at Moody's Analytics, Mark Zandi, notes that financial markets feel increasingly fraught, with elements in place for a meaningful selloff. This threat is highest for stocks and corporate bonds, but even crypto, gold, and silver remain at risk despite recent pullbacks.

Zandi points to mixed economic fundamentals as a source of tension, including US real GDP growing below its potential, employment flatlining, and unemployment creeping higher. Inflation remains stubbornly high at 3%, while renewed tariff chaos and the threat of conflict with Iran add to market uncertainty.