The latest commodities update from Bloomberg Intelligence picks gold as the year’s most likely best performer. The report says the precious metal will gather strength as the Chinese economy falters and bond yields decline – meaning a new bull run could be on the imminent horizon.
Mike Mcglone, Bloomberg Intelligence’s senior commodity strategist says, “The enduring downtrend in Chinese economic-growth estimates are fed by the coronavirus and U.S. attention on trade deficits. As decelerating China GDP is a key piece of the macroeconomic puzzle, the coronavirus outbreak is yet another catalyst to further estimate reductions. Gold will remain the primary appreciating commodity in 2020.
“A resumption of the broad-commodity bear and nascent gold bull markets is likely in 2020. Unless the stock market rally velocity is sustained, we believe it’s more likely that most commodity prices and interest rates will decrease, with gold the notable exception and tactical trading on the rise.”