Gold A Better Option Than Stocks

last updated on

Gold A Better Option Than Stocks

Gold Is A Better Option Than Stocks In 2025

The 2025 is almost here and it seems that the bullish call for Gold (XAU/USD) remains valid. In fact, it seems that Gold (XAU/USD) will be a better option when compared with the US stocks.

If we look back at 1980, Gold went through a lot of bull bear cycles. In 1980, Gold reached the top and then eventually bottomed in 1985. After that, Gold (XAU/USD) went through sideways trading and made yet another bottom in 1999.

Gold To Make A New High

Fast forward to 2004, when gold made new highs and eventually made its top in 2011. The same cycle continues all the way up to 2024.

All of the technical patterns now hint at yet another bull run for Gold (XAU/USD) in 2025. The best part is that Gold will gain against all the major currencies.

If we look at historic charts, Gold has even managed to gain against stable and hard currencies such as the CHF. So, it will not be difficult for Gold to gain ground against the USD and EUR.

The Silver/Gold Ratio is also an important indicator to check the value of precious metals. The last time Gold made a new peak was also accompanied by a jump in this ratio.

The Silver/Gold ratio has yet to show such a reading, which is evident of a Gold top. This is a sign that even though Gold has gained quite a bit in 2024, it is still far away from reaching the top.

Meanwhile, the recent data also shows that we will not get another rate cut. The Fed may introduce a small rate cut of 25 bps to balance out the things, but we can forget about outsized rate cuts.

Despite this, the appeal of Gold (XAU/USD) as a solid hedge or even a store of wealth will always remain high. So, it should come to a surprise that Gold will make a bull run given the state of the global economy.

Trending Stories