The attractiveness of gold as a safe haven has reached a critical level

Gold is poised for another rally as global economic slowdown warnings pave the way for a fresh push towards $2,000 an ounce.
A potent mix of years of inflation, geopolitical turmoil and growing recession talk should be bullish for the traditional haven, according to speakers polled ahead of this week's Singapore precious metals conference.
Bullion fell about 10% from its mid-March high after fears dissipated that Russia's invasion of Ukraine could escalate into a wider conflict. But now, with senior bankers warning of more economic turmoil, the situation is ripe for stagflation, which would be optimistic for gold.
“After decades of massive deficit spending and ultra-loose monetary policy, we are heading into a period of stagflation,” said Gregor Gregersen, founder of Silver Bullion Pte. “In an environment like this, safe-haven assets like physical gold and silver are some of the best things you can own.”
Gregersen predicts that gold and silver could rise to around $2,000 an ounce and $26 an ounce, respectively, by the end of the year and could exceed those levels if unexpected "black swan" events occur.
On Tuesday, spot gold fell 0.2% to $1,837.93 an ounce at 8:39 am in Singapore. The Bloomberg Spot Dollar Index also fell 0.2%. Silver fell to about $22 an ounce, while palladium and platinum dropped.
According to Rona O'Connell, head of market intelligence for regions including Asia at StoneX Group, bullion prices are facing resistance at $1,930 an ounce, but if that level is broken, it could reach $2,000 thanks to technical trading.
“Economic and geopolitical factors are more supportive of gold than they would be bearish,” O'Connell said in an interview ahead of the conference.
While the specter of higher rates and rising bond yields weighs on the no-interest precious metal, the Fed's aggressive tightening stance is also raising recessionary fears, especially in the US.
The decline in gold prices in recent months comes as the US central bank began a rate hike cycle with officials raising rates for the first time since 2018 and signaling increases in all six remaining meetings this year.
President of Goldman Sachs Group Inc. John Waldron and CEO of JPMorgan Chase & Co. Jamie Dimon warned last week of economic turmoil amid concerns including inflation risks and the effects of war in Europe. These uncertainties may well lead to more investors looking for a store of value.