Geopolitics, De-Dollarisation, and the Future of Gold Prices

In this interview, we talked about the drivers behind the strong performance of the gold price and what those drivers were likely to be going forward. Prices in local currencies could not be ignored, so economic data that strengthened the dollar was expected to have a short-term negative impact on gold. However, in the current climate of heightened geopolitical risk and ongoing de-dollarisation, many of the usual indicators that would have moved the gold price a decade ago were seen as little more than noise. When asked what it would have taken for the gold price to face a serious correction, the response was that all the correlating factors would have needed to align to prompt a wave of profit-taking. Even then, a $300–$400 retracement from the recent high near $3,800 was more likely to have been viewed as an opportunity for new buyers, who missed the boat the first time to get a gold allocation.