Fears of trade hostility are triggering a quiet but massive capital shift from the "Old Continent," creating a strong longterm bullish driver for the precious metals market.
🔸 According to analysts clients are increasingly seeking to diversify risks away from US stocks. This trend began in April 2025 but has accelerated sharply this week due to concerns over Trump tariff policies.
🔸 European investors hold approximately $10.4 trillion in US equities, accounting for 49% of all foreign owned US stocks. Even a minor capital flight from this massive volume is enough to shake Wall Street.
🔸 As capital flees the US stock market due to geopolitical risks and USD instability, $XAU becomes the ideal destination. Money seeking a safe haven explains why Gold continues to break highs even before the USD fully collapses. The decoupling of European capital from US assets will act as a catalyst for Gold to maintain its Parabolic run.
If just 5% of this $10.4 trillion shifts into Gold for hedging, is the $6,000/oz mark still unrealistic for 2026?
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