Understanding how investors value gold begins with recognising that it is fundamentally different from shares or bonds. Investors usually value companies by analysing earnings, free cash flow, dividends and returns on capital. Gold generates no profits, dividends or cash flow, yet it has remained one of the world's most important investment assets for centuries.
Markets spent the second week of July balancing renewed inflation concerns against resilient corporate earnings and continued strength in artificial intelligence-related stocks. Rising oil prices and higher bond yields revived questions over how quickly central banks can begin easing policy, encouraging investors to become more selective in their positioning.