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Gold has shown surprising weakness lately, contrary to what might normally be expected during a period of geopolitical shock. Jurrien Timmer observes that this trend may be due to a shift in sentiment among fast money investors who had previously moved quickly into gold when its price gained momentum.
Timmer suggests that as sentiment reverses within this group, gold's usual role as a safe haven asset is being challenged, leading to underperformance despite ongoing global tensions.
Timmer has previously tracked market reactions during periods of high volatility. He reported that the S&P 500 fell 9.2 percent as its P/E ratio dropped 18 percent following recent market swings. In a separate analysis, he described how sudden oil price spikes have coincided with equity drawdowns in years like 1973 and 2022. These observations frame gold’s recent moves in the context of broader market stress.