Market Watch: The So-called Great Debasement Trade is Back on as Gold Sets Fresh Record, Says This Strategist
Article by Jules Rimmer in Market Watch
Gold reaching a new record high is evidence the “great debasement trade” is back on, says one strategist.
Robin Brooks, the senior economist at the Brookings Institution and previously chief currency strategist at Goldman Sachs, made his comment as gold surged past $4,400 an ounce.
In a post on Substack, Brooks wrote that the upswing is a direct result of the most recent interest-rate reduction from the Federal Reserve and fears of debt monetization, meaning central-bank buying of bonds the government issues.
Gold has now delivered a 68% return in 2025, and silver, subject to many of the same propellants, is now up 140% after it, too, set a fresh record Monday.
Rising geopolitical tensions concerning Venezuela and new Ukrainian attacks on Russian ports and shipping have also contributed to gold’s safe-haven allure in recent days.
For Brooks, the breakout in gold and precious metals more generally was triggered by ......