Gold’s surge to the $4,000 mark is flashing a clear warning sign, according to Goldman Sachs vice chairman Robert Kaplan.
Speaking on CNBC’s Squawk on the Street, Kaplan said the metal’s nearly 40% year-to-date gain should not be ignored. “That’s a red light that deserves our attention,” he said, pointing to gold’s unusual role as the preferred safe haven amid rising anxiety about U.S. fiscal policy.
Kaplan noted that investors are piling into gold even as the 10-year U.S. Treasury yield fails to rally in line with traditional market patterns. “The 10-year Treasury isn’t acting like a safe haven right now — gold is,” he said. Normally, geopolitical or government stress drives demand for Treasuries, not bullion.
He attributed this shift to worries about America’s ballooning fiscal deficit, which is making investors wary of government bonds. “We’re still on track, before tariffs, to run a very large deficit,” Kaplan added. “We need to show we’re making progress on deleveraging — and the jury’s still out on that.”
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Kaplan more or less echoing Adam from a couple of weeks ago:
- Gold rising every day isn't normal and it isn't a good sign
