Gold Continues to Soar as U.S. Economy Struggles

The US economy is struggling, reports the Wall Street Journal, at both ends, from rich to poor, from basics to luxury: “The economy has seen pockets of weakness in recent years, but nothing that suggests such widespread weakness.”

Details from the WSJ report, impact on lower income:

Wal-Mart – “budget-pressured” customers are showing stressed behaviors: They are buying smaller pack sizes at the end of the month because their “money runs out before the month is gone.”

McDonalds – the fast-food industry has had a “sluggish start” to the year, in part because of weak demand from low-income consumers. Across the U.S. fast-food industry, sales to low-income guests were down by a double-digit percentage in the fourth quarter compared with a year earlier.

And on the high end:

Luxury markets – American consumers’ spending on the luxury market, which includes high-end department stores and online platforms, fell 9.3% in February from a year earlier, worse than the 5.9% decline in January.

Costco – with a customer base that skews higher-income, demand has shifted toward lower-cost proteins such as ground beef and poultry…. CFO says consumers could become even pickier if they see more inflation from tariffs.

With wage growth down, savings down, the stock market getting slammed, tariffs on their way driving higher prices, oil down, and cryptocurrencies tanking, we ask…

What is showing strength around the world?

Gold!