Gold has dropped around 6% in a single month, giving back much of the quarter's earlier gains — yet it still ended the quarter about 3.5% higher. Stonex analyst Fawad Razaqzada argues that if bond-market worries deepen and investors start doubting the sustainability of U.S. fiscal policy, demand for gold as an alternative to fiat currencies could return in force. Central banks, led by China and Poland, keep adding to their reserves regardless.
Here is his take on the fiscal channel that could put gold back in play — plus what a calmer Strait of Hormuz would mean for prices.
