Gold market volatility: cycle insights and portfolio notes for mine planners
Reviewed by Joe Ashwell

First reported on MINING.com
30 Second Briefing
Volatility in broader equity markets has not dented Derek Macpherson’s positive outlook for gold, with prices holding firm as geopolitical risk rises and oil-driven inflation pressures build. Central banks in countries reducing US dollar exposure—particularly US adversaries wary of Russia-style reserve seizures—continue to accumulate bullion, providing steady structural demand alongside safe-haven buying via ETFs and futures. Macpherson, CEO of West Point Gold, notes that while gold can be sold in liquidity crunches, it has historically been among the first assets to rebound post-crisis, as in 2008 and 2020.
Technical Brief
- Central bank de‑dollarisation is explicitly linked to Russia’s reserve seizure after the Ukraine invasion.
- Adversarial and potentially adversarial nations to the US are systematically swapping US dollar reserves for bullion.
- Safe‑haven flows are described across physical bars, ETFs and futures, not just one instrument.
- Inflation transmission is traced from geopolitically driven oil price spikes into transport, manufacturing and consumer prices.
- Macpherson emphasises gold’s non‑yielding nature, making its relative appeal highly sensitive to policy rate cuts.
- Futures and options positioning is flagged as a key amplifier of short‑term gold price volatility.
- Liquidity crises are characterised as phases where “everything is for sale”, including bullion, before post‑crisis rebounds.
- Historical reference points include the 1970s inflation shock and the 2008 financial crisis as analogues for current conditions.
Our Take
Gold appears in a relatively small subset of the 1188 Mining stories in our database compared with base metals, but several of those gold pieces – such as the Troilus copper‑gold work in Quebec – also emphasise copper, underlining how many new ‘gold’ investment cases are actually polymetallic and partly leveraged to industrial demand.
The presence of USA Rare Earth and Glencore across multiple recent items, from African artisanal gold supply deals to copper‑gold exploration and critical minerals portfolios, suggests that large traders and critical‑minerals developers are increasingly entangled with gold flows rather than treating gold as a fully separate asset class.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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