Hey, Ross here:
As markets continue their violent moves due to the situation in the Middle East.
One question has perplexed many – why has gold fallen so much?
Today, I share some possibilities.
Chart of the Day
The month isn’t over yet.
But gold ETFs have seen their largest outflows dating back to April 2013 – 13 years ago.
And last week, gold saw its biggest weekly loss in six years.
Gold is typically regarded as a “safe haven” asset.
So with all the volatility and geopolitical uncertainty being churned up – why is it pulling back so much?
One theory is that because the same geopolitical tensions pushing oil and gas prices higher are also raising fresh inflation concerns…
The market is becoming less confident that central banks will cut rates as quickly as hoped.
And that’s a problem for gold.
Unlike bonds or cash, gold doesn’t pay interest.
So when inflation fears push yields higher – or reduce the odds of rate cuts – gold can lose some of its appeal.
Another possibility is even simpler:
In volatile markets, investors often sell what they can sell – not just what they want to sell.
And gold is one of the most liquid assets in the world.
So if traders are taking losses elsewhere, they may be dumping gold to raise cash, cover margin calls, or simply reduce risk.
In other words, this pullback doesn’t necessarily mean the long-term case for gold is broken.
It may just mean that, in the short term, gold is getting caught in the same liquidity storm hitting everything else.
Insight of the Day
Expect the unexpected – and always question your assumptions
Those who thought that gold would have behaved “as expected” lost money.
The market has a habit of humiliating people who rely on simple narratives.
War breaks out – so gold should rise.
Many times the expected narratives do play out.
But in many other cases, they do the exact opposite instead.
That’s why one of the most important habits you can build as a trader is to constantly question your assumptions.
The case of “war breaks out so gold should rise” is based on a very simplistic assumption that gold is the de facto safe haven asset in the case of volatility.
But as I’ve just shown you, when you dive deeper, those assumptions just aren’t holding up in the short term.
And if you want to make money in times like these…
You need to question your assumptions before the market questions them for you.
That’s why in just a few hours at 11 a.m. Eastern later this morning…
I’m going LIVE to show you how to think through markets like this in real time…
And, more importantly, how to spot “unexpected” opportunities even when the obvious trade isn’t working.
The strategy I’ll be demonstrating could have allowed you to book triple-digit gains even as the market was plunging from the tariff uncertainty last year.
So make sure you don’t miss this.
Just click here to lock in your spot if you haven’t yet…
And I’ll see you in just a bit at 11 a.m. ET sharp.
P.S. If you’re planning to attend on a mobile device, make sure you download the presentation app now so you don’t miss anything when it starts. See you there.
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Customer Story of the Day
“Fantastic! Doing well investing with Traders Agency and Ross Givens.
Best decision I have made on this investing journey. Thanks.”
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
