With the new presidential administration in place, all eyes are on the United States’ economic health. The country has not ceased to engage in some concerning geopolitical tensions while also championing its position on digital assets. Yet, one expert has recently stated that the gold price and silver have both sent a “very important message” on a potential US recession.

The US dollar had been thriving following the inauguration of US President Donald Trump. However, the greenback has recently slid to reach a January low. That pushed the interest in gold higher, as the metal neared its all-time high price of $2,790 set in October of 2024. Moreover, there are expectations that it could be on a record trajectory as January comes to a close.

gold bars
Image Source: Pixabay

Also Read: Goldman Sachs Revises Gold Price Prediction For 2025

Expert Warns Gold & Silver Send ‘Very Important Message’ Regarding US Recession

Although the US dollar has been the world currency since post-World War II, there is no denying that gold still holds an important role. Indeed, the yellow metal is viewed as a critical hedge to the inflationary pressures the US currency faces. Moreover, with cryptocurrencies enjoying a rising relevance, that has not shifted the potential that the metal still has.

Now, one expert has recently shared that the asset also holds robust information. Similar to stock market trading, the price of these resources can help to give insight. For the gold price, one expert claims it is trying to give a “very important message” on an impending recession in the United States.

“Gold and Silver are possibly sending a VERY important message to those that are listening,” Patrick Karim said in a post to X (formerly Twitter). Alongside all other evidence, it is tough to see we are not heading into a recession. Sooner rather than later,” he added.

Also Read: BRICS Drives Gold Price to All-Time High as Nations Ditch US Dollar

Karim noted that data from early 200, 2008, and 2020 all show a drop in the specified ratio he shared. Additionally, he stated that similar action is setting the stage for an economic downturn in the immediate future. Moreover, he added to his perspective that the market signal verifies his point.

Specifically, he states that recessions often follow increases and subsequent corrections for indices like the S&P 500. Although that has not happened yet, economist Henrik Zeberg recently projected such collapses to take place after the stock market thrives.

Speaking to Finbold in December of last year, Wall Street analyst Gordon Johnson discussed a potential downturn. He noted that the United States is “likely already in, or on the brink of, a recession.” All eyes point to a downturn taking place, as Karim said, sooner rather than later.

  • gold price
  • Recession
  • US Economy