QUESTIONS OR CONCERNS? Talk With An ITM Trading Analyst Now: Schedule a Free Strategy Call or Speak to Someone Now at 866-706-9061.

In a recent interview with Daniela Cambone, David Daglio, former CIO of Mellon and strategic advisor for TwinFocus, shared insights into the current state of the global economy and why gold is becoming a key asset for those worried about what’s to come.

Gold Prices on the Rise: Why Wall Street Isn’t Embracing It

One of the most surprising revelations from Daglio’s discussion was how gold prices have been steadily rising, outperforming other major assets, particularly since the Ukraine war. Despite this, Wall Street has largely ignored gold, and major financial platforms, like Bloomberg and CNBC, have barely mentioned the rally.

Daglio attributes this to the narrative Wall Street wants to uphold—the idea that the economy is stable, the Federal Reserve is in control, and that traditional stock market investments remain the safest bet. But for those paying attention, gold has become “the most overlooked straight-up asset.” Since the U.S. began using the dollar as a geopolitical tool, specifically seizing $600 billion from Russian citizens during the Ukraine conflict, faith in the dollar has been shaken globally. Central banks, recognizing the instability, have started buying gold at record levels.

This shift in global perception could indicate a larger movement toward a Bretton Woods Agreement-style moment—something Daglio suggests may be on the horizon.

Are We Approaching a Bretton Woods II Moment?

Daglio refers to the original Bretton Woods Agreement in 1944, when global leaders established the U.S. dollar as the world’s reserve currency, a system that has been in place ever since. However, much has changed in the decades since President Nixon effectively untied the dollar from gold, allowing for limitless dollar printing. Now, with rising debt, growing distrust in the U.S. financial system, and aggressive fiscal policies on both sides of the political aisle, many are wondering if this system is nearing its end.

Daglio explains that for decades, the U.S. has run large deficits with little consequence, but that may soon change. With geopolitical tensions rising, particularly between the U.S. and China, and central banks worldwide increasing their gold reserves, we may be on the verge of a new global financial structure—what some are calling a Bretton Woods II moment.

The Fed’s Dilemma: Are We Heading into Stagflation?

In the same interview, Daglio discusses the role of the Federal Reserve in the current economic landscape. Over the last 25 years, the Fed has repeatedly lowered interest rates to stave off economic crises, from the Long-Term Capital Management collapse in 1998 to the 2008 housing crisis and, most recently, the COVID-19 pandemic.

However, this approach has led to the unprecedented manipulation of interest rates, which has created a fragile balancing act for the Fed. With inflation rising and the Fed’s tools becoming less effective, Daglio suggests we could be entering a period of stagflation—a combination of high inflation and stagnant economic growth. Historically, this is one of the most challenging environments for central banks to navigate, and it spells uncertainty for investors.

He goes on to highlight the Fed’s struggle, saying, “The balance beam that Powell is walking on is about an inch wide,” emphasizing the difficulty of managing inflation while maintaining economic stability.

What Does This Mean for You?

For those nearing or in retirement, the implications of these economic changes are profound. With rising inflation, mounting debt, and uncertainty surrounding the U.S. dollar’s role in the global economy, traditional investments may no longer offer the same security they once did.

Daglio’s advice? Be cautious. As the global economy heads toward a possible downturn, it’s more important than ever to diversify your portfolio, particularly by looking into uncorrelated assets such as gold.

Why Gold Matters More Than Ever

Gold’s importance in a diversified portfolio cannot be overstated, especially in today’s climate. As Daglio points out, gold has been quietly outperforming major assets like the S&P 500, and central banks around the world are stocking up. Gold offers a level of financial security that other assets, tied to the dollar or other volatile currencies, simply cannot.

Gold also serves as a hedge against inflation, market volatility, and currency devaluation—concerns that have been growing, especially among our clients at ITM Trading. As we approach what could be another seismic shift in the global economic order, like the original Bretton Woods Agreement, gold remains a key asset for protecting wealth and securing retirement.

How to Protect Your Wealth in Uncertain Times

The global economy is at a crossroads, and it’s critical to take proactive steps to protect your financial future. At ITM Trading, we specialize in helping individuals understand the role of tangible assets like gold and silver in safeguarding wealth during times of market volatility and economic uncertainty.

Our 28+ years of experience, backed by data-driven research, equips our clients with the knowledge and strategies they need to build resilient portfolios that can weather these storms. With rising gold prices and growing concerns about the US dollar’s decline, now is the time to learn how gold can help protect your wealth.

Concerned about the future of your wealth? Don’t wait until it’s too late. Talk with an ITM Trading Analyst Now: Schedule a Free Strategy Call or speak to someone directly at 866-706-9061. Let us help you make informed, proactive decisions to protect and grow your wealth with confidence.