Precious metals – underdelivering, but not broken
Gold has, for now, fallen short of expectations. In a backdrop that should have been supportive – geopolitical tension, elevated uncertainty – the price action has been more muted than anticipated.
The reason sits in flows, not fundamentals.
Parts of the market – including sovereign and institutional holders – have liquidated gold positions to fund fiscal pressures, war-related spending, or rebalance portfolios after the rally. That early selling phase capped upside and created the sense that gold “missed the moment.”
But structurally, very little has changed.