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Stay long gold, just not as a hedge
In this article, Russ Koesterich discusses why gold may continue to advance in 2025 despite a stronger dollar and elevated real rate environment. Key takeaways: • Historically, higher real rates and a strong U.S. dollar have served as headwinds for gold. • Recently the price of gold has continued to advance despite these factors with support stemming from central bank purchases and growing U.S. deficits. • In this environment, gold is less likely to act as a hedge to equities but rather as a long-term store of value. Gold continues to work. Year-to-date, the precious metal is up 3%, beating stocks. On a ... (full story)