Bloomberg Intelligence has identified support for gold to ascend to a new all-time high in this final quarter of the year. In its Q4 outlook shared this week, Bloomberg’s senior commodity strategist revealed that it has its eyes firmly fixed on a stronger US dollar, saying that has the potential to give gold a strong burst of momentum in what is likely to be a very topsy-turvy end to an already very turbulent year.
Mike McGlone says historical data supports its expectation for a new gold record, saying, “Gold is likely to remain atop our macro-performance scoreboard in 4Q. The greenback entering a bear market would propel gold, if history is a guide. As a bull market resumes, the metal has pulled back from getting overextended above $2,000 (£1,526) an ounce and should build a base around $1,800 (£1,373), with increasing debt-to-GDP and quantitative easing the catalysts. History dictates that the gold-price rally should accelerate toward $2,000 (£1,526) if the dollar is peaking.
“Our graphic depicts the divergent strength in gold despite a rising dollar. Since the Federal Reserve rate hike in December 2015, gold has gained about 80% vs. 5% in the dollar. In more of a nascent resumption-rally mode at the onset of 2020, the benchmark store-of-value metal appears poised to accelerate its edge vs. most assets if the dollar peaks. In 2008, when gold reached the $1,000 (£762) handle the first time, the trade-weighted broad dollar had dropped to a 13-year low. Record highs in March elevate greenback mean-reversion risks, favouring dollar-denominated gold.”
It’s well worth remembering that the dollar isn’t the sole driving force which signals good news for gold. Other factors, such as the increasingly volatile US election, a struggling stock market and Brexit all favour the yellow metal in its current bull market.
Act quickly. Buy now to be in prime position to benefit.
Inquire now and we'll send you the 
