GMA Viewpoint: The Case for Higher Gold Prices

Nov 2018

November 2018

We argue that gold and related assets are poised for a multi-year uptrend. A slowing U.S. economy, a more dovish Fed, and stabilizing growth outside the U.S. should lead to lower real rates in the U.S., a weaker U.S. dollar, and consequently a higher gold price over the next six to twelve months. Looking further ahead, increasing uncertainty about fiscal sustainability in major economies, stability of monetary policy regimes, and optimal sovereign reserve allocations could help gold occupy a more prominent role in strategic portfolio allocations due to its safe-haven and diversifying characteristics. We hold long positions in gold and gold mining equities and review our case.

Sergei Parmenov

Managing Director

Cyril Moulle-Berteaux

Head of Global Multi-Asset Team

The Case for Higher Gold Prices

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