Mike McGlone, Bloomberg’s leading commodity strategist, wrote in his January outlook: “The precious metal, which is denominated in US dollars, will end 2019 at its highest level in six years and has reached new highs in other currencies, particularly the euro.
It will only be “a matter of time” before gold in US dollars follows gold in euros to new highs, McGlone said.
Since the Federal Reserve’s rate hike in December 2015, gold has gained strength and the metal “will need a good reason” to stop its upward trend.
Gold’s unique properties set it apart from the commodity complex. From an empirical perspective, the performance of portfolios with passive commodity exposure has improved, including a clear allocation to gold.
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