Great Upside For Gold In 2019?
As market volatility continues to increase to the downside, some investors are turning to gold. Kitco interviews Mike McGlone, senior commodity strategist, at Bloomberg Intelligence to learn more about gold’s potential upside. Mike believes gold is like natural gas and will soon shoot higher. McGlone explains,
“The big picture for gold, I find very disconcerting. Meaning, I’m fearful of how much it could go up. It looks to me like natural gas.”
While most the mainstream media has completely forgotten about gold, some are convinced rising debt levels will send it higher during the next market crash. After years of decline, natural gas prices fell below $2 in early 2016, only to go parabolic in late 2018, rising to above $4.50.
Gold remains range-bound, trading up $9 to US$1,246 Monday afternoon.
Mike McGlone on Gold’s Divergence with U.S. Dollar
Gold appears to be showing a divergence with the dollar and stocks, indicating upside potential for the yellow metal in 2019. McGlone elaborates,
“A lot of the drivers are turning positive. The volatility of the stock markets is turning up, from the lowest ever…and the dollar has had a substantially strong year. The trade-weighted dollar is the best performing major asset class on the planet this year. It’s up 8% this year, yet gold is trickling, it’s up/down 6%. To me, I see a sign of divergent strength.”