Gold Surges As Traders Hedge Against Fiscal Risks And Currency Debasement

Benzinga

Gold soared past $4,000 an ounce as investors hedge against U.S. fiscal risks and a weaker dollar. Fueled by Fed rate-cut signals and Trump’s tax pledges, the “debasement trade” drives record demand for gold over traditional safe havens.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:02Gold futures broke above $4,000 an ounce for the first time as investors flocked to alternative

00:07assets amid growing uncertainty over the U.S. economy and President Trump's trade agenda.

00:12Precious metals surged more than 50% this year, outpacing rallies during the pandemic

00:16and the 2007-2009 recession.

00:19Analysts say Trump's efforts to reshape global trade and pressure the Federal Reserve to

00:23cut rates have weakened the dollar, fueling gold's rally.

00:26Central banks have accelerated purchases, with 415 tons added in the first half, while

00:31Western investors funnel record inflows into gold ETFs.

00:35Goldman Sachs forecast prices could reach $4,900 by December 2026, as central bank demand and

00:41rate cuts continue to support the market.

00:43For all things money, visit Benzinga.com.

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