Deutsche Bank: Gold's Continued Record Highs Indicate Underlying Panic in the Stock Market

Jinse Finance reported that the price of gold has just reached another all-time high, which is inconsistent with the broader market's optimistic tone. After all, gold typically serves as a safe-haven asset during times of economic uncertainty. Deutsche Bank analyst Henry Allen stated that this suggests there is underlying panic in the stock market, with investors being optimistic about equities while also fearing significant downside risks. Allen said: "Although there are many factors driving the price of gold, one of them is that it is seen as a safe-haven asset that investors buy when they are fearful. Currently, the market expects U.S. inflation to remain above target for the next few years, which is far from 'perfect.' This is linked to ongoing tariff concerns, and scrutiny of industries such as pharmaceuticals and semiconductors is still ongoing. Moreover, the market believes the likelihood of a U.S. government shutdown at the end of the month is increasing. In addition, there are clearly concerns in the market about slowing job growth."