There are several ongoing stories across multiple investment classes, including stocks trading near their all-time highs, oil is trading above $50 per barrel, and the U.S. dollar continues to struggle.
Meanwhile, gold is on pace for its best monthly performance since February, which may be confusing as the commodity is viewed by many as a safe-haven investment when other asset classes are struggling.
Gold Is The New Gold
"I think risk is rising, and I think the sort of risk-free double down on risk assets period is probably over," Wolff added.
Gold As An Anti-Dollar Play
The U.S. dollar continues to weaken, which by default makes gold stronger, Boris Schlossberg of BK Asset Management added to the discussion. Looking forward, if there is any kind of negative data set relating to the U.S. economy or any positive data set from the Federal Reserve in terms of raising rates, then gold will deflate "just as it has" over the past few years.
But this doesn't mean that now is the time to jump in and buy gold, he continued. There is still certainty if there will be a rally in the dollar moving forward or if the weak trend still has steam left.
At the end of the day, gold is an "anti-dollar trade than anything else" and not so much as a risk trade.
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