Navigating the Impact of U.S. Debt Downgrade and De-Dollarization
The recent downgrade of U.S. sovereign debt by Fitch has not sparked a surge in safe-haven demand for gold, unlike in 2011, due to the different economic conditions. However, experts believe that gold prices could rally through the end of the year as investors focus on U.S. debt. The market remains in good shape with healthy physical demand supporting the highest average quarterly gold price. The biggest hurdle for higher gold prices is the Federal Reserve's tightening cycle, and until the economic picture becomes clearer, the market is expected to remain stuck in neutral.