That’s been proven accurate, as stocks are down, the dollar is stronger, and yields are rising... yet gold is soaring. Here’s what it all means and what you need to do about it. As we all know, the long-awaited Fed pivot was launched on Wednesday with an aggressive half-point cut. One might think that the markets would have celebrated that deep cut, and indeed, all the risk assets soared immediately afterward as the black-box algorithms interpreted the major move.
That’s the point I made to a MarketWatch reporter last week, who quoted me in their top article for the day: It’s no surprise to hear that expectations for interest-rate cuts by the Federal Reserve were behind gold’s latest rally to record highs, as recession worries boost the precious metal’s appeal. But gold also may prove its worth as an “all-weather hedge against whatever happens next” even if the central bank makes an unexpected move.