(Kitco News) – The stock market selloff and mounting fears of a recession are driving demand for gold, while sales of silver coins are in freefall as high costs and markups discourage buyers, according to precious metals analysts at Heraeus. In their latest precious metals update, the analysts noted that the market’s current risk-off posture is boosting gold’s safe-haven appeal.
“Concerns over a potential US recession are back in focus, with equity markets showing signs of strain,” they wrote. “The S&P 500 is now 2% lower than at 5 November 2024, when Donald Trump was elected, as persistent uncertainty over trade relations weighs on investor sentiment. On 7 March, hedge funds unwound single-stock positions at levels comparable to March 2020, reflecting a notable shift toward risk reduction.”
“Adding to the recession narrative, the 10-2 year US Treasury yield spread curve un-inverted in late 2024, having remained inverted since October 2022,” they said. “Historically, such un-inverting has preceded economic downturns by 6-12 months, putting Q1’25 at the beginning of this window.
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