The Bank of New York Mellon(US:BK) Jin Shi Shu Ju·2025-10-24 08:21Core Viewpoint - Gold has experienced significant volatility, with a sharp decline following a peak, indicating that U.S. equities may serve as a better hedge against volatility than gold [1][3]. Summary by Sections Gold Market Analysis - Gold prices fell by 6.3% after reaching nearly $4,400 per ounce, dropping below $4,100 again, with a daily decline of over 1.5% [1]. - Concerns about inflation have historically driven investments into commodities like gold and silver, but long-term, equities are viewed as superior inflation hedges [3]. - The recent rise in gold prices was partly attributed to a decline in the U.S. dollar index, which has rebounded by approximately 2.4% since mid-September after an 11% drop earlier this year [3][4]. U.S. Treasury and Inflation Concerns - Fears regarding the depreciation of U.S. Treasuries have led to increased gold investments, but these concerns are considered overstated [4]. - The drop in gold prices on a strong dollar and a decline in the 10-year U.S. Treasury yield below 4% illustrates the market dynamics at play [4]. - Despite market worries about tariffs potentially raising prices, there is no expectation of a significant short-term rise in inflation [4]. U.S. Equity Market Outlook - The financial services company holds an "overweight" position on U.S. equities, predicting they will outperform the overall market [5]. - This outlook is based on the robust performance of the U.S. technology sector and productivity growth, which is more than double that of most other developed countries [5]. - The company forecasts U.S. economic growth of approximately 1.8% this year and 2% next year [5].