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Opinion: Forget trade wars and tariffs — here’s the economy’s real enemy - MarketWatch

1. Tariffs draw media attention, overshadowing significant debt issues plaguing the economy. 2. U.S. federal debt is nearing $37 trillion, pressuring financial stability and growth. 3. Gold prices typically rise when trust falters and debt levels increase significantly. 4. Rising interest rates make corporate and consumer debt increasingly burdensome. 5. Investors are turning to gold as a hedge against economic uncertainty and rising debt.

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FAQ

Why Bullish?

Gold benefits during economic instability, exemplified by past debt crises. Historical spikes in gold prices during financial distress support this view.

How important is it?

The article highlights the structural economic issues influencing gold prices, leading investors to see gold as a hedge. The current financial landscape and increasing debt concern make gold significantly more relevant now.

Why Short Term?

Immediate market reactions to rising interest rates and inflation concerns may drive gold demand. As debt levels rise, investors will seek safe havens like gold more rapidly.

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