Elton John film on gold shines as price soars like Rocket Man

[Ben Graham]

Elton John has said goodbye to the yellow brick road – but not to the yellow metal, which is a big part of his life as the new short film “Touched by Gold” shows.

Released this week by the World Gold Council, the free online movie explores the English pop star’s relationship with the precious metal, from his art to his health.

“Gold is used in pacemakers,” John said while describing being fitted with one of the devices in 1999. “[Gold] is highly conductive which makes it perfect for carrying electrical signals to the heart. I was astonished. It made me feel good about it. So gold is used for things other than glamourization and beautiful objects!”

The release of the film with the “Rocket Man” singer coincides with spot gold rocketing to a historic high of $3,707.40 per oz. on Wednesday. This extends a nearly 18-month increase in the metal’s price driven by geopolitical tensions, inflation and the weakening of the US dollar.

Precious knees, tests

Gold has also become part of John’s knees, in a sense. After he had both kneecaps replaced last year, he hired a jeweller to fit his right kneecap into a gold pendant for a necklace. His left kneecap went into a flowery golden brooch.

The star’s philanthropic work, such as his founding of the Elton John AIDS Foundation in 1992, further reveals gold’s positive contribution to human health. Early in the AIDS epidemic in the 1980s, HIV and AIDS testing involved weeks of clinic visits before results were known. Testing had improved by 2012, when rapid self-care kits that could give results in less than 30 minutes became widely available.

“Gold was used in rapid HIV tests,” John said. “In some tests, the red lines represent gold nanoparticles. I would never think gold could be helpful to a pacemaker or microphones or an HIV test. It has incredibly helpful uses to millions and millions of people.”

Gilded sound

While John confesses in the film that he’s not the most technically minded musician, he said one of the few items he requires in the studio is a good microphone. He was surprised to learn that even microphones have a connection to gold.

“Some of the best studio mics use a gold-coated diaphragm inside to capture the fullest range of my voice. It’s a fascinating thing and I never would have known that,” he said.

Golden Superman

Before he retired from touring in 2023, one of John’s last shows took place at the Glastonbury Festival in southern England.

Holding an old Elvis Presley album showing the star wearing a gold lamé suit, John explained that he had a similar one custom made for Glastonbury.

“You feel like Superman [wearing that], he said. “That suit had more impact than any other suit in my career.”

Fed cut bumps gold

Closer to Earth, gold investors continue to watch interest-rate decisions closely.

While spot gold prices initially rose following the United States’ Federal Reserve’s 0.25% interest rate cut on Wednesday, the market became cautious after Fed chair Jerome Powell said it was a “meeting-by-meeting situation,” BMO Capital Markets analysts Helen Amos and George Heppel said in a note on Friday.

The US Dollar Index (DXY), which tracks the dollar against other major currencies, also rose back above 97. With gold’s value often moving opposite to the US dollar, the index serves as an important gauge for miners and investors tracking gold demand.

Ryan McIntyre, a senior managing partner at Sprott, said Friday the precious metal has absorbed Wednesday’s rate cut. Minneapolis Fed President Neel Kashkari backed Powell’s decision and implied there could be two more cuts this year, which could further support gold prices.

“We remain constructive on gold given heightened geopolitical and economic uncertainty, alongside its growing role as a strategic reserve asset for both institutional investors and sovereign nations,” McIntyre said.

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