Deutsche Bank: Gold's continued record highs indicate panic in the stock market

Gold prices just hit another all-time high, a move at odds with the broader market's optimistic tone. After all, gold typically acts as a safe haven asset during times of economic uncertainty. Deutsche Bank analyst Henry Allen says this suggests a lurking panic in the stock market, with investors both bullish on stocks and concerned about significant downside risks. "While gold prices have many drivers, one is its perceived safe haven value, bought in times of fear," Allen says. "The market currently anticipates US inflation will hover above target for the next few years, which is far from 'perfect,'" he says. This is coupled with ongoing tariff concerns and ongoing scrutiny of sectors like pharmaceuticals and semiconductors. Furthermore, the market sees a growing likelihood of a US government shutdown at the end of the month. Furthermore, there are clear concerns about slowing job growth."