{"id":101144,"date":"2025-02-21T08:49:08","date_gmt":"2025-02-21T08:49:08","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/finance\/gold-is-an-essential-component-of-portfolio-says-expert-as-it-nears-3000-while-trump-musk-suggest-fort-knox-inspection-amid-the-surge-invesco-qqq-trust-series-1-nasdaqqqq-spdr-sp-500-arc\/"},"modified":"2025-02-21T08:49:08","modified_gmt":"2025-02-21T08:49:08","slug":"gold-is-an-essential-component-of-portfolio-says-expert-as-it-nears-3000-while-trump-musk-suggest-fort-knox-inspection-amid-the-surge-invesco-qqq-trust-series-1-nasdaqqqq-spdr-sp-500-arc","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=101144","title":{"rendered":"Gold Is An ‘Essential Component’ Of Portfolio, Says Expert As It Nears $3000 While Trump, Musk Suggest Fort Knox Inspection Amid The Surge – Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), SPDR S&P 500 (ARCA:SPY)"},"content":{"rendered":"


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As the precious metal nears the $3000 per ounce mark, all focus shifts to gold. As this expert highlights that the yellow metal is a portfolio \u201cessential,\u201d he adds that \u201cfiscal dominance\u201d could be a trigger for its divergence from inverse correlation with real yields.<\/p>\n

What Happened: <\/strong>Despite trading flat at $2,930.62 per ounce, down 0.31% as of the publication of this article, gold has been testing the $3,000 level after hitting fresh records.<\/p>\n

The metal\u2019s 52-week range lies between $2,015.55 and the latest record high of $2,954.97.<\/p>\n

Gold has given similar returns to the S&P 500 index since 2020 while having a lower volatility, explains Jurrien Timmer<\/strong>, the director of global macro at Fidelity Investments<\/strong>. \u201cGold remains an essential component of a diversified portfolio in a regime in which bonds might remain impaired,\u201d he added<\/p>\n

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Gold has been a big winner for the past few years, keeping up and even beating equities. It’s quite a performance for an asset that often gets lamented for not providing a cash flow. Since 2020, gold has produced almost the same return as the S&P 500 while having a lower\u2026 pic.twitter.com\/khS02bvDbJ<\/a><\/p>\n

\u2014 Jurrien Timmer (@TimmerFidelity) February 20, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

Timmer also noted gold\u2019s traditional inverse correlation with real yields has broken down recently. He said that likely due to \u201cfiscal dominance\u201d and geopolitical factors like central bank gold purchases.<\/p>\n

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Gold is now testing the $3,000 level as the global money supply is perking up again and real yields are coming down.
Valuing gold has been a challenge these past few years, breaking their age old pattern of mimicking the inverse of real yields. The chart below shows a steady\u2026 pic.twitter.com\/MWYi5TV6Wa<\/a><\/p>\n

\u2014 Jurrien Timmer (@TimmerFidelity) February 20, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

See Also: \u2018Reduce Deficits And Debt\u2026 Full Stop,\u2019 Says Craig Shapiro As Trump Mulls \u2018DOGE Dividend\u2019 By Giving Away 20% Of Its Savings To Public<\/a><\/strong><\/p>\n

Why It Matters: <\/strong>Meanwhile, during the ongoing four-day 2025 Conservative Political Action Conference, Tesla Inc.<\/strong> TSLA<\/span> CEO Elon Musk <\/strong>addressed the gold at Fort Knox and said, \u201cIt\u2019s the public\u2019s gold. It\u2019s your gold. I think you have a right to see it.\u201d<\/p>\n

President<\/a> Donald Trump <\/strong>added during his speech, \u201cWe\u2019re going to open the doors and inspect Fort Knox,\u201d He continued, \u201cI don\u2019t want to open it and find the cupboards are empty,\u201d<\/p>\n

According to Treasury Secretary Scott Bessent<\/strong>, an audit is conducted annually and confirms that all the gold is accounted for and present, reported<\/a> AP. <\/p>\n

Since 1937, Fort Knox has secured U.S. gold. It now also functions as the Army\u2019s human resources command and the site of its largest yearly training.<\/p>\n

Price Action: <\/strong>The SPDR S&P 500 ETF Trust<\/strong> SPY<\/span> and Invesco QQQ Trust ETF <\/strong>QQQ<\/span>, which track the S&P 500 index and Nasdaq 100 index, respectively, fell on Thursday. SPY was 0.42% lower at $610.38, and QQQ was also down 0.42% to $537.23, according to Benzinga Pro<\/a> data.<\/p>\n

Read Next:<\/strong><\/p>\n

Photo courtesy: Shutterstock<\/em><\/p>\n<\/div>\n

Market News and Data brought to you by Benzinga APIs<\/a><\/p>\n

\u00a9 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.<\/p>\n<\/div>\n