Dmytro Kharkov

Gold faced margin calls amid USD surge, Ronnie Stoeferle argues

Gold faced margin calls amid USD surge, Ronnie Stoeferle argues
Gold selloff tied to USD and Fed

Gold's status as a traditional safe haven came into question during a recent selloff, according to Ronnie Stoeferle. He notes that, despite the prevailing consensus that gold failed in its safe haven role, the reality was shaped by a combination of factors, including a war that triggered margin calls and a global USD scarcity caused by an oil price spike.

Stoeferle highlights that a hawkish Federal Reserve and inflation fears undermined hopes for rate cuts, pushing real yields higher. These dynamics contributed to the historic downturn in gold prices.

Stoeferle previously relayed an industry expert's warning about a sharp shift in the economic outlook and increased turbulence. In a separate analysis, he cited Walter Bagehot to explore how panics and manias often expose irrational financial behavior. These earlier observations offer context for recent market reactions.

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