A top strategist has warned investors not to be fooled by temporary surges in equity markets as underlying concern for US economy remains. The comments, from State Street Global Advisors’ chief gold strategist George Milling-Stanley, make the case to buy now with a likely equity correction set to spark a new gold run.
Milling-Stanley said, “When equities go up, gold prices can go up, down, or sideways. However, since the financial crisis, every time equities have gone down, gold has provided some support and I think that is something investors are paying closer attention to in the current environment. “I think I am more concerned about the health of the U.S. economy than a lot of other people. I ’m not fooled by the rally in equity markets. There are issues in the U.S. economy that are being masked by equity markets.”
The analyst has previously said that a new bull run is in the making and expected prices between $1,450 and $1,700. However, he now says that this could be a little off the mark, adding, “Given the moves we have seen in January, my bull case may prove to be a little too conservative.” Buy now to benefit.