Deutsche Bank: Gold's continued record high indicates that there is panic in the stock market

Gold prices have just hit another all-time high, which is at odds with the optimistic tone of the broader market. After all, gold usually acts as a safe-haven asset in times of economic unease. According to Henry Allen, analyst at Deutsche Bank, this shows that there is panic lurking in the stock market, with investors both bullish on the stock market and concerned about significant downside risks. Allen said: "While there are many drivers of gold prices, one of them is that it is seen as a safe-haven asset for investors to buy in times of fear. The current market expectation that US inflation will hover above target in the next few years is far from'perfect ', which is linked to ongoing tariff concerns, and the scrutiny of industries such as pharmaceuticals and semiconductors is still ongoing. And the market sees a growing likelihood of a US government shutdown at the end of the month. On top of that, the market is clearly worried about slowing job growth. "