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... Bloomberg Intelligence is projecting "a severe global economic reset," with gold set to be one of the top commodity assets this year.
"We see gold as the potential shining star this year," said Bloomberg Intelligence senior macro strategist Mike McGlone. "The Federal funds rate … [is] still rising [and] may represent the early days of what we see as a severe global economic reset. The enduring gold bull and crude-oil bear markets may be energizing."
... McGlone prefers to look at the relationship between gold and oil to get a more precise outlook. "Crude oil's high-velocity rally to the peak in 2022 may have solidified a foundation for gold. The metal appears to be bottoming from the steepest 24-month drawdown since 2015," McGlone said. "The 2022 price spike may have set the new standard, with implications for commodity deflation and gold buoyancy."
Since 2007, gold has gained about 130%, while WTI saw a decline of about 20%. And if WTI crude falls to $40, it would pave the way for gold to hit $3,000 an ounce.