Gold prices remain at record levels as bond prices fall and dollar rises

Geopolitical tensions and the possibility of spreading wars in Ukraine and the Middle East, even on a global level, are causing large and alarming imbalances as the price of gold continues to rise despite a rising dollar and falling bond prices.

Usually bond and gold prices move in parallel, as they are seen as safe havens in times of economic hardship and unstable interest rates. However, over the past 3 weeks there has been a rapid fall in bond prices (i.e., an increase in interest rates on them), and at the same time the dollar is rising. Therefore, according to previous market laws, the price of gold should have started to fall. Instead, the price of gold has risen 29% since the start of the year, reaching an all-time high of $2,700 an ounce.

Gold could see its best period since 1979 without an inflationary boom, with gold up +126% in 12 months.

Official global gold reserves have reached 1,170 million ounces, the highest since the 1970s. An attempt is now being made to convey to the public that inflation will now begin to decline, which is why interest rates have begun to decline. But gold's accumulation shows that more powerful countries and more serious investors are not accepting this narrative. Inflation could not be contained, and this is due to military conflicts and sanctions against Russia.

But the fear of global conflict over war in Ukraine and the Middle East raises an additional fear: if the situation escalates, the first financial instruments to be destroyed will be bonds and money. The only thing that will have value is gold.

After a global conflict, a room with gold bars will remain a room with gold bars. But after a catastrophe, a room with money or bonds will turn into a room with waste paper… The planet is going through a period when all the basic rules of modern economics are being violated. This means that markets are not confident in how events are developing and are anxiously awaiting the results of the US elections on November 5th.

D. Trump's victory will most likely bring peace and the beginning of a new period of economic prosperity. At the same time, the victory of K. Harris will allow the Deep State behind them, which provoked the war in Ukraine, to continue to pursue the same policy that is dangerous for everyone.

One of the largest Greek shipowners A. Martinos recently strained it “through his teeth”What “if Greek shipowners had not transported Russian oil, prices would have been twice as high“! He even added, speaking at the 5th Athens Triennial Meeting, that “9/10 of the world refrains from sanctions against Russia.”

Obviously, as long as this distorted climate continues with sanctions against Russia and the war in Ukraine, gold prices will rise because no one will feel safe. Not to mention that the situation will escalate into an all-out conflict between Israel and Iran, which will have a direct impact on oil prices.

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