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Luke Gromen, industry influencer, comments on the potential impact of a global shift back to economic blocs. He highlights that gold is currently one of the cheapest assets relative to historical valuations when the world was previously divided into blocs.
Gromen suggests that gold would need to increase in price by two to three times to reach mean reversion levels, assuming central bank reserves do not increase further.
Gromen previously reported that non-monetary gold was the U.S.'s biggest export for four out of the last five months. In a separate analysis, he discussed how Iranians and French counterparties considered trade settlements in euro or Chinese yuan, possibly linked to gold sales. These developments come as rising interest in gold trade and settlement continues to shape international markets.