Gold Surges Amid AI Bubble Fears and Rate Hike Doubts
Gold and silver prices rose again on Friday, this time accompanied by gains in global stock markets. The move is attributed to increased bets that the Federal Reserve may not raise US dollar interest rates after all in 2026.
The price of gold reached a weekly high since May at $4390 per troy ounce, while silver added another 0.4% to its 11.4% leap in US dollar terms. The solid opening for New York's stock market put global equities on track for their third week of gains.
Justin Lin from Global X ETFs noted that gold's correlation with global equities has reached a high since the metal returned to open market trading after the collapse of Bretton Woods 55 years ago. He expects gold to decouple from equities in the near term, citing past performance data showing gold outperformed equities by an average of 6.5% following periods of high correlation.
Meanwhile, industrial precious metals platinum and palladium fell back due to a decline in oil prices. Metals strategist Nicky Shiels at MKS Pamp noted that the economy is on autopilot, with the Fed in no hurry to hike rates, and oil holding a delicate balance.