by Mark O’Byrne
GoldCore
HSBC’s respected chief precious metals analyst James Steel has written a note pointing out that the global trade slowdown will likely lead to “higher gold prices” as reported by Bloomberg.
Analysts at HSBC Group Inc. are telling clients that gold may be about to have another shining moment, as the precious metal’s status as a safe haven asset could boost prices, given the prospect of a looming downward shift in globalization.
The firm’s Chief Precious Metals Analyst James Steel says in a note published on Friday that “demand for gold is often stimulated by the same factors that fan protectionist and populist sentiment” and that “abrupt declines in cross border trade, investment and immigration, the dislocation of global economic policies, and a beggar-thy-neighbor approach to trade is almost tailor-made for higher gold prices.”
Previously, Steel advocated owning gold as a “long term insurance policy”.