In response to the negative impact on economic activity of COVID-19 and to the supply shock created by the Saudi-Russia market-share war, the gold-to oil ratio has made a new all-time high. Moreover, the recent surge is,…
On Monday, gold suffered from the indiscriminate selling wave prompted by margin calls. In an environment where yields fell to an intraday low of 0.31% and the dollar sold off violently against both the yen and the euro, gold…
Overweight Global bourses broke down yesterday, succumbing to immense pressure from the coronavirus epidemic gripping South Korea, Italy and Iran. Finally, lower profit growth expectations are weighing on extreme equity…
Palladium prices bottomed at $167/oz in the aftermath of the financial crisis and have since skyrocketed to $2458/oz, making it the most expensive precious metal in the PGM space. In annual terms, this constitutes a total return…
The rally in gold prices has been relentless, but tactically, the yellow metal is due for a correction. Gold prices are a negative function of real interest rates and a positive function of inflation expectations. Moreover,…
Highlights Collective market signals suggest a low but non-negligible probability of a dollar spike due to the coronavirus. Stay long the yen as a portfolio hedge. Short CHF/JPY bets also make sense. Our limit sell on the gold/…
Overweight This week we reintroduced a modest portfolio hedge via augmenting exposure to global gold miners to overweight. Global gold miners have a lot going for them. Rising global policy uncertainty plays to their…
According to our Technical Indicator (TI), the extremely overbought situation in global gold miners has been worked out. Following a parabolic bull run from May to September, our TI is now drifting to the neutral zone. Relative…
Highlights Portfolio Strategy Gold bullion is on the move again, and falling real yields, a soft economic backdrop, a depreciating US dollar and resurgent geopolitical uncertainty, all argue for reintroducing a modest portfolio hedge…
Gold looks a little overbought in the short term, and less monetary stimulus and a rise in rates next year would be negative factors. Nonetheless, the yellow metal remains a good hedge against our positive economic view going…