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Why It Remains a Core Asset in a Changing Market
Gold has maintained its position as a globally recognised store of value, even as financial markets have evolved significantly.
Unlike traditional investments such as equities or bonds, gold does not rely on earnings, dividends, or interest payments. Instead, its value is shaped by macroeconomic forces, including inflation, monetary policy, and investor confidence.
In an environment where financial conditions are becoming increasingly complex, gold is being reassessed not just as a defensive asset, but as a core component of long-term portfolio construction.
Accessing Gold in Modern Markets
One of the key developments in recent years has been the increasing accessibility of gold as an investment. Historically, physical ownership required significant capital, along with secure storage and insurance arrangements.
Today, investors can access physical gold more easily through providers such as Commonwealth Vault, which offers secure storage and direct ownership structures. This allows investors to hold allocated gold outside of traditional banking systems while maintaining full ownership. More information on how this works can be found at
For those looking to invest in gold more directly, the ability to buy gold online has expanded significantly. Investors can now purchase a range of bullion products, including bars and coins, with varying sizes and price points. A selection of physical gold options can be explored here:
These developments have broadened access to gold and made it easier to incorporate into a diversified portfolio.
Gold and Economic Cycles
Gold’s performance is closely linked to economic cycles, particularly periods of uncertainty or monetary expansion.
Following the Global Financial Crisis, gold prices more than doubled as central banks introduced large-scale stimulus measures. This increase in liquidity, combined with declining real interest rates, created a favourable environment for gold.
A similar pattern emerged during the COVID-19 pandemic. As governments and central banks responded with unprecedented fiscal and monetary support, gold reached record highs above USD 2,000 per ounce.
These examples highlight a consistent trend. When confidence in financial systems is tested, demand for gold tends to increase.
Inflation Protection Over Time
Gold has long been viewed as a hedge against inflation, although its effectiveness can vary in the short term. Over longer periods, however, it has demonstrated a strong ability to preserve purchasing power.
Since 1971, when the United States moved away from the gold standard under Richard Nixon, gold has delivered average annual returns of around 10 percent, according to the World Gold Council.
During the same period, inflation has significantly reduced the value of fiat currencies. Data from the U.S. Bureau of Labor Statistics shows that cumulative inflation has exceeded 600 percent.
This long-term dynamic reinforces gold’s role as a store of value, particularly in environments where monetary expansion is persistent.
Portfolio Stability and Risk Reduction
Gold’s diversification benefits are well established. It has historically exhibited low correlation with both equities and fixed income assets, making it an effective tool for reducing portfolio volatility.
During periods of market stress, gold often behaves differently from traditional assets. For example, during the sharp market decline in early 2020, the S&P 500 experienced significant losses, while gold recovered quickly and finished the year strongly.
This ability to perform independently of other asset classes is particularly valuable in the current environment, where traditional diversification strategies are being challenged.
Allocating a portion of a portfolio to gold can help reduce downside risk without significantly limiting long-term returns.
Structural Demand Trends
Gold demand is supported by both institutional and consumer activity, creating a strong underlying foundation for the market.
Central banks have been increasing their gold reserves in recent years as part of broader diversification strategies. According to the World Gold Council, central bank purchases exceeded 1,000 tonnes in 2022, the highest level on record.
At the same time, consumer demand remains strong, particularly in countries such as China and India. In these markets, gold serves both as a form of wealth preservation and a culturally significant asset.
Supply, however, remains relatively constrained. Annual gold production increases at a modest pace, and new discoveries are becoming less frequent. This imbalance between supply and demand provides long-term support for gold prices.
Risks and Market Sensitivity
While gold offers several benefits, it is not without risk.
Its performance is influenced by factors such as interest rates, currency movements, and investor sentiment. Periods of rising real interest rates can reduce demand for gold, as higher yields make income-generating assets more attractive.
A strengthening US dollar can also act as a headwind, as gold is priced globally in US dollars.
Short-term price movements can be volatile, particularly in response to economic data releases or changes in central bank policy. However, these fluctuations are typically part of broader market cycles.
Over longer time horizons, gold has maintained its role as a stabilising asset.
Outlook for Gold
The global economic outlook remains uncertain. Debt levels are elevated, inflation remains a concern, and central banks are navigating complex policy decisions.
According to the International Monetary Fund, global public debt continues to exceed 90 percent of GDP, limiting the flexibility of monetary policy.
In this context, assets that are not directly tied to financial systems or currencies become increasingly relevant.
Gold’s independence from these systems is one of its defining characteristics. It does not rely on the performance of any single economy or institution, making it a valuable component of a diversified portfolio.
Gold continues to serve as a core asset within modern investment strategies.
Its long-term performance, combined with strong demand and limited supply growth, supports its role as a store of value and a diversification tool.As global conditions evolve, gold remains a practical option for investors seeking stability, resilience, and long-term value preservation.
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Target recalls popular baby wipes after FDA finds potentially harmful bacteria
Check out what’s clicking on FoxBusiness.com.
Target is recalling several Up & Up baby wipes products sold nationwide after testing identified potentially dangerous bacteria that could cause serious infections, particularly in infants and young children.
According to a recall notice posted Friday by the U.S. Food and Drug Administration (FDA), Target is voluntarily recalling certain lots of Up & Up Fragrance Free Baby Wipes and Up & Up Fresh Cucumber Scented Baby Wipes following customer complaints about product discoloration.
FDA testing identified the presence of Burkholderia cepacia complex and Burkholderia gladioli in samples of the affected wipes.
Health officials warned that products contaminated with the bacteria could lead to serious and potentially life-threatening infections. The wipes are primarily used on newborns, infants and young children, a group considered particularly vulnerable because of their developing immune systems.
TARGET TO CUT PRICES ON 3,000 ITEMS AS INFLATION REMAINS ABOVE FED TARGET

Up & Up Fragrance Free Baby Wipes sold at Target stores nationwide are included in a voluntary recall announced June 2026. (FDA / Unknown)
The FDA said healthy individuals who use the contaminated wipes on skin with minor cuts or abrasions may develop localized infections. However, infections in immunocompromised individuals, newborns and infants could spread into the bloodstream and potentially cause sepsis or pneumonia.
The recalled wipes were manufactured by supplier Sapro Temizlik Urunleri and sold at Target stores nationwide as well as through Target.com.
Target and the manufacturer have received a number of consumer complaints and adverse event reports alleging product discoloration and symptoms including skin irritation, eye irritation and infections that may be linked to use of the wipes. The reports remain under investigation.
A representative for Target did not immediately respond to FOX Business’ request for comment.
TARGET SET TO OPEN ITS 2,000TH STORE, PLANS TO OPEN HUNDREDS MORE IN NEXT DECADE

A three-pack of Up & Up Fresh Cucumber Scented Baby Wipes is shown. Target is recalling certain baby wipes products after FDA testing identified potentially harmful bacteria in product samples. (FDA / Unknown)
The recall affects multiple sizes of Up & Up Fragrance Free Baby Wipes, including 20-count, 72-count, 216-count, 800-count and 1,200-count packages, as well as Up & Up Fresh Cucumber Scented Baby Wipes sold in 72-count, 216-count and 800-count packages.
Consumers are being urged to stop using the recalled wipes immediately and return them to any Target store for a full refund.
Target said customers seeking additional information can contact Target Guest Relations at 1-800-440-0680.
The recall is being conducted with the knowledge of the U.S. Food and Drug Administration, and Target said it is continuing to investigate the matter in coordination with the manufacturer.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TGT | TARGET CORP. | 122.57 | -1.28 | -1.03% |
According to the FDA, the affected Up & Up Fragrance Free Baby Wipes were manufactured between Nov. 7, 2025, and May 5, 2026, and carry expiration dates ranging from May 10, 2028, through Nov. 5, 2028.
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The recalled Up & Up Fresh Cucumber Scented Baby Wipes were manufactured between Dec. 29 and Dec. 30, 2025, and carry expiration dates ranging from June 29, 2028, through June 30, 2028.
A complete list of affected UPCs, manufacturing codes and package sizes is available in the FDA recall notice.
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