Gold prices are soaring and it could be the ultimate champion sounding death knell to dollar; here's when the greenback could turn vulnerable

economictimes.indiatimes.com:

Gold as an asset in the US market has been performing exceedingly well in the last couple of years, and the bull run in the stock market has somehow helped it keep its prices steadily.

ET Year-end Special Reads

Buying a home in 2025? Here's how property market can shape up

18 top stock picks for 2025 from 6 leading brokers

Five big bangs that shook the corporate world in 2024

Gold prices to soar through 2025?

Gold started 2024 at $2046 per ounce and as of January 1, 2025, its price stands at $2622,which is a clear increase of over 28%. Such a major surge in US assets is welcomed warmly by US investors, especially when the S&P 500 index soared by 25% in a calendar year, which is still 3% less than the outcome of gold.

Why is gold becoming the alternative of US dollar?

Countries around the world are moving away from using the US dollar as a reserve currency, especially after the US government decided to freeze Russian assets in 2022. This has been a major development, as countries then began hunting for an alternative, and it naturally came to gold in the end, as it is already a tested trade settlement mechanism. However, the problem in this case is the fact that there is not enough resources at hand to settle these massive volume of trades.

There is a major chance that gold demand could increase if American tech stocks' bubble bursts in the coming months, in the case the AI overhype dies down. That would be a game worth witnessing.

FAQs:

Are there chances of a recession in the US economy this year?
Reports have