Record-setting gold is having its best year since the 1970s. Returns have ramped up in recent weeks as the Fed has started a new rate-cutting cycle. A new catalyst entered the fray on Tuesday, with China reportedly interested in being a gold custodian. In case you've missed it, there's been a bit of a gold rush going on. The price of the precious metal is on a seemingly unstoppable ascent to record after record, including its latest on Tuesday. There's interest from the Wall Street elite, such as ...

Market Risk & Geopolitical Factors - Equity markets are experiencing nervousness potentially due to Middle East tensions and potential US involvement [1] - Low liquidity is hindering aggressive trading, with the market drifting and awaiting the next major catalyst [3] - A negative surprise catalyst is deemed more likely given optimistic pricing on trade and the tax bill [3] Central Bank Policies & Currency Dynamics - The Fed's message regarding stagflation risks is slightly negative for stocks and the dollar [2][10] - The Swiss National Bank (SNB) is being watched for a possible move to negative interest rates [4] - The Swiss franc is viewed as a financial asset similar to gold, serving as a portfolio diversification asset [5][6] - Geopolitical factors, not fundamental inputs, primarily drive the Swiss franc [8] Dollar Performance - The dollar's recent strength is marginal, around 01% [9] - The Fed's stagflation message is not particularly positive for the dollar, and the short squeeze appears to be losing momentum [10] - The world is structurally overexposed to the dollar [10]