Gold has rallied almost 37% over the past year due to uncertainty plaguing the economy. The rally has accelerated in recent weeks as gold is being seen as a perfect hedge against both inflation and a recession. Recent comments from the Federal Reserve’s meeting and from Chicago Fed’s Goolsbee indicate that the Fed is just as uncertain as the rest of us and is waiting for further data before they decide on cuts.
As such, gold could surge even further since no one knows how much retaliatory tariffs will cause a spike in inflation, if it materializes in the first place. Gold stocks will be the biggest beneficiary of this since their financials have the best exposure to gold. Historically, gold miners lag gold price surges initially but catch up as financials improve, and these stocks should fit the pattern.
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