Geopolitical risk drives capital to private sector: analyst

AI desk brief

Market-cycle analyst Martin Armstrong says rising geopolitical tensions are pulling capital away from government debt and toward private assets, a backdrop he считает supportive for gold once current risk easing fades. He argued recent gold weakness is temporary, with tensions still unresolved and a rally likely to resume from Q1 next year as capital shifts further into the private sector.

Armstrong flagged a downside break below $4,000/oz on a weekly close as opening room toward $3,500-$3,700/oz, but said that level may be less important than timing. He also warned that European military tensions should keep long-term rates and inflation elevated, which he framed as broadly constructive for bullion over time.