Gold blasted through $3,000 an ounce for the first time ever yesterday, then added a few more bucks in early trading today. Meanwhile, stocks are trying to rebound after yet another plunge Thursday. Crude oil is up a bit, while Treasuries and the dollar are modestly lower.
I’ve been expecting gold to hit “$3K in Q1” for a while…and yesterday afternoon, it did. So, what’s behind the move? Gold has been climbing for more than a year due to strong central bank buying and solid investor demand globally. But it has really turned on the jets in 2025 because President Trump’s trade and tariff policies are driving market volatility higher – and investors are turning to gold as “insurance.”
Source: Bloomberg
Still, gold’s outperformance is a longer-term trend. Even Bloomberg noted today that gold has beaten the S&P 500 for the last quarter-century, 10X-ing during that time as stocks 4X-ed.
Worth noting: Two mining stocks highlighted in our MoneyShow 2025 Top Picks Report are now at the top of the performance leaderboard, with year-to-date gains of 90.3% and 80.7% as of yesterday. Congrats to the contributors who submitted them! You can still download a FREE copy of the report here if you haven’t already.
Finally, stocks are celebrating the fact Senate Democratic leader Chuck Schumer opted to deal rather than stiff-arm Republicans and force a government shutdown. By refusing to block a funding bill the House previously passed, he ensured the government will remain funded through year end. But many more-aggressive Democrats had urged Schumer to use this opportunity to push back at Trump Administration policies.
