Gold keeps winning the battle with economists

Keynes was right that gold’s monetary role is a convention, not a law of nature. — Bloomberg

GOLD is trading near US$5,000 an ounce.

And yet, in the middle of US and Israeli war on Iran and as foreign central banks sell Treasuries to defend their currencies and bond yields rise instead of fall, the precious metal has barely budged even as the world’s monetary authorities – the very institutions built to make gold obsolete – buy it at the fastest pace in a generation.