5 Critical Factors That Could End Gold’s 7-Month Green Streak

Gold is on the verge of an unprecedented eighth consecutive monthly gain, a streak that would be the longest in its history. Investors have moved into the safe-haven metal amid macroeconomic uncertainty, yet strategists warn the rally faces multiple headwinds: rising rates, fragile markets, budget deficits, technical resistance and liquidity risks.

Mark Zandi of Moody’s Analytics says the elements for a meaningful selloff are coming into place, adding that 'Valuations are high…investors are simply investing on the faith that prices will rise quickly in the future because they have in the recent past.' Mixed economic fundamentals add tension.

US real GDP is growing just over 2%, below the economy’s potential of roughly 2.5%; employment has flatlined and unemployment continues creeping higher. The Fed’s preferred inflation gauge gained ground—December PCE rose to 2.9% with core PCE at 3.0%, the highest since November 2023.

United States

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