Gold Should Be Soaring… So Why Isn’t It? | Adrian Day

In this episode of Soar Financially, host Kai interviews Adrian Day, president of Adrian Day Asset Management, to unpack why gold isn't soaring despite escalating geopolitical tensions in the Middle East. Adrian explains that gold's price action is driven by a complex interplay of factors: pre-emptive buying before conflict (buying the room), a simultaneous flight to the U.S. dollar as a safe haven, and a regional liquidity crisis—particularly in the Gulf—where investors and nations like Turkey sold gold to raise cash. He highlights that Turkey’s sale of 120 tons in two weeks is a massive event, dwarfing annual central bank purchases. Despite short-term pressure, Adrian affirms that gold remains in a long-term bull market, with sentiment shifting not due to geopolitics but due to macroeconomic forces like rising interest rates and a hawkish Fed. He also discusses mining stocks, noting that while higher oil prices increase costs, the impact is manageable—especially for well-hedged companies like Agnico Eagle—and that sentiment among retail investors remains unchanged until broader market downturns trigger a shift. The episode concludes with a forward-looking perspective: gold’s long-term fundamentals remain intact, even if short-term volatility persists.