Investors looking to hedge against global economic uncertainty continue to pile into gold, pushing prices to $3,400 an ounce. According to one market strategist, gold’s appeal will continue to grow as recession fears intensify.
Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence, wrote in a research note Tuesday that the growing discrepancy between oil and gold prices is sending strong signals that economic conditions may continue to deteriorate to historic levels.
“In 100 years of annual performance, 2025’s year-to-date decline of almost 21% in oil prices versus gold’s 26% gain has brought the disparity to nearly 50%—the fourth-largest difference from 1925 to 2025,” he said.
McGlone noted that gold’s 30% rally to last month’s all-time highs at $3,500 an ounce has put its trajectory in line with the gains seen in 2007 and 1935. Coupled with plunging oil prices, he said these two signals do not bode well for the economy.
“We see crude's low-price cure near $40 a barrel and gold's next resistance at around $4,000 an ounce. A lower U.S. stock market may be a major force to get there,” he said.
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