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Analyst says geopolitical risk could fuel a future gold rally

Martin Armstrong links the shift toward private assets to rising concerns in Europe, saying long-term rates and inflation tend to rise during war, which he views as a risk to borrowing costs.

Reported · Written up by our desk · Precious Metals

Geopolitical tensions are pushing investors away from government debt and toward private assets, a move that could eventually support another gold rally, according to market-cycle analyst Martin Armstrong, speaking with Mining.com.

Armstrong argued that Europe faces a larger risk backdrop, saying countries are increasingly questioning the European Union and that mounting military tensions could push borrowing costs higher.

He added that gold’s recent weakness reflects temporary easing of geopolitical fears rather than a durable shift in gold’s outlook, suggesting further moves lower could occur if those risks continue to decline.

Armstrong also said bond markets provide the clearest signal on the situation, arguing that during war periods, interest rates and inflation typically rise.

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