Gold's Unusual 10% Weekly Jump Alarms Economist Peter Schiff; Warns Of 'Something Big'

Economist Peter Schiff has issued a stark warning amid gold's explosive rally, saying the metal's sudden surge signals a looming market upheaval.

"This is getting serious. Gold is at $4,370. It could hit $4,400 tonight. That's a 10% move in just over a week. Something big is about to happen," said Schiff, Chief Economist & Global Strategist at Euro Pacific Asset Management.

Friday marked the fifth consecutive session of gains for gold in international markets, with prices up 1.23% at $4,379.93. The rally is resonating globally. In India, ahead of the Diwali festival, domestic gold prices surged to a record Rs 1,30,233 per 10 grams. Year-to-date, gold has rallied nearly 70%, as compared to a feeble 8% return from the benchmark NSE Nifty 50 index.

The metal has jumped around 10% this week, buoyed by escalating investor demand amid growing global economic uncertainty. Persistent concerns over US-China trade tensions, instability in regional banks, and mounting speculation around further Federal Reserve rate cuts have all contributed to the flight to safety.

The surge in the pricing of the yellow metal has been fuelled by a combination of geopolitical risk, central bank buying, de-dollarisation trends, and robust ETF inflows. The current macroeconomic environment, marked by low interest rates, has further strengthened the case for non-yielding assets like bullion.

Western sanctions against Russia have also heightened investor caution, adding momentum to gold's rise.

Gold's status as a safe-haven asset has been underscored by industry leaders. Speaking at the NDTV World Summit, Sachin Jain, regional CEO of the World Gold Council, pushed back on the notion that gold is a passive or "sleepy" investment.

"Gold is the anchor that has performed timelessness over the years. It's not just a sleepy asset class, but an asset class that has performed phenomenally well in these times of flux," Jain said.