Happy Sunday, and welcome to Benzinga’s financial advisor newsletter.

Today we're discussing gold. Central banks have added over 1,000 tonnes of gold annually for three years amid rising global uncertainty. A record 43% plan to boost gold reserves, citing crisis performance and inflation protection.

Plus, a look back at the last week of market activity.

Table of Contents

• Industry Chatter

• Weekly Market Recap

• The Week Ahead

INDUSTRY CHATTER

Why Are Central Banks Still Stockpiling Gold?

In an era of inflation shocks, shifting alliances, and economic volatility, one thing hasn’t changed: central banks are doubling down on gold. While investors may debate crypto, equities, or cash, the institutions managing national reserves are quietly — and consistently — boosting their gold holdings. And they’re doing it in record amounts.

The latest Central Bank Gold Reserves survey from the World Gold Council offers fresh insights into why this centuries-old asset remains so essential in modern reserve strategy. The message is clear: gold isn’t just a relic — it’s a key tool for navigating global uncertainty.

The takeaway? Confidence in gold is strong. Nearly all respondents (95%) believe global gold reserves will increase over the next year, and 43% say they personally plan to add more to their own reserves. None reported plans to decrease their holdings.

Why the continued interest? It comes down to a few key factors: gold tends to perform well during periods of crisis, it provides portfolio diversification, and it holds long-term value — something that matters when inflation or geopolitical risk are on the rise.

The survey also shows changing views around currency reserves. A majority (73%) of central banks think the U.S. dollar’s share of global reserves will shrink over the next five years, while assets like the euro, Chinese renminbi, and gold are expected to gain ground.

More central banks are also actively managing their gold, with 44% now doing so — up from 37% last year. Risk management and return optimization were cited as the top reasons. And while the Bank of England remains the most popular place to store gold, more banks are bringing their reserves closer to home — 59% now store at least some gold domestically.

Bottom line: in a world of uncertainty, gold remains a trusted asset for central banks — and their continued buying signals long-term confidence in its role as a stabilizer in turbulent times.

WEEKLY MARKET RECAP

Wall Street Wavers As Geopolitical Tensions Flare, Trump Renews Attacks On Fed Chair Powell

Investor caution dominated Wall Street this week, as escalating tensions between Israel and Iran fueled fears of potential U.S. involvement. Plus, the Federal Reserve's decision to keep rates as is peeved President Donald Trump.

The Federal Reserve kept interest rates steady at 4.25%-4.5% for the fourth consecutive meeting, reaffirming its cautious stance.

Overall economic uncertainty has “diminished” since March, but the Fed warns that risks remain elevated. Policymakers maintain their median projection of two rate cuts in 2025, while trimming the 2026 outlook from three cuts to two — signaling a slightly more hawkish stance.

Powell Defends The Decision

Federal Reserve Chair Jerome Powell defended the pause. He argues that while inflation has moderated, it is still too high to justify rate reductions. He cited new inflationary pressures stemming from tariffs tied to trade policy changes.

The Fed now forecasts 2025 headline inflation at 3%, up from 2.7% in March. Meanwhile, GDP growth was revised downward to 1.4% in 2025, from a prior estimate of 1.7%.

However, in a Friday interview with CNBC, Federal Reserve Governor Christopher Waller said the U.S. central bank could start cutting interest rates as early as July.

Waller is a Trump appointee.

Trump, meanwhile, took to calling Powell names in a social media post, labeling the Fed Chair "an American disgrace," arguing that the Fed’s inaction costs the U.S. billions in higher interest payments.

Federal Housing Finance Agency Director Bill Pulte echoed the sentiment, calling for Powell's immediate resignation and blaming him for damaging the housing market. Homes are sitting on the market for weeks or even months while prices remain sky high and mortgage rates remain near 6.8%.

Energy Sector

Oil prices, which spiked in the prior week, steadied near $73 per barrel. Powell dismissed parallels with the 1970s oil shocks, stating that while further price spikes are possible, they are unlikely to generate persistent inflationary effects.

Meanwhile, two major Congressional developments shaped market action. The Senate's draft tax bill proposed phasing out clean energy and solar tax credits earlier than anticipated, sparking a steep sell-off in renewables.

• First Solar Inc tumbled 13% on the week

• Enphase Energy Inc dropped 18%, and

• Sunrun plunged 35%.

On The Crypto Front: Coinbase Global Inc. surged 27% on the week after the Senate passed a bill establishing a federal framework for dollar-pegged cryptocurrencies, known as stablecoins.

The bill offers what its supporters argue is long-awaited regulatory clarity that could unleash capital from institutional investors. Critics, mostly Democrats, say it’s a conflict of interest for the Trump family.

THE WEEK AHEAD

Fed Chair Powell testifies, Nike, FedEx, and Walgreens report earnings, and more

Economic Data

• Monday: US existing home sales, manufacturing PMI, and services PMI

• Tuesday: US Fed Chair Powell testifies to HFSC, and CB consumer confidence

• Wednesday: US Fed Chair Powell testifies to SBC, and new home sales

• Thursday: US initial jobless claims and durable goods orders

• Friday: US core PCE price index and UK GDP

Earnings

• Monday: Woodside Energy (WDS), FactSet Research Systems (FDS),

• Tuesday: FedEx (FDX), Carnival (CCL)

• Wednesday: Micron Technology (MU), General Mills (GIS)

• Thursday: Nike (NKE), Walgreens Boots Alliance (WBA)

• Friday: Apogee Enterprises (APOG), FingerMotion (FNGR)

Click here for the full calendar of economic data and earnings reports.

LEARN WITH BENZINGA PRO

Lastly, if you would like to be featured in our upcoming Advisor Spotlight and showcase your business in front of all our subscribers, click here to send us an email.