If history, data and charts are anything to go by, even with gold at seven-year highs, there’s still room for more gains
Even with gold at seven-year highs, there’s still room for more gains if history is anything to go by.
Prices have surged this year as haven-seeking investors pour in. Markets have been shaken by worries that the coronavirus outbreak will cripple global growth, coupled with expectations for looser monetary policy around the world.
Assets in bullion-backed exchange-traded funds are at the highest ever and money managers are holding a near-record bullish bet.
Yet gold remains a relatively small percentage of portfolios by historic standards. And as investors assess the virus threat to the world’s biggest economies, it’s worth remembering that the metal’s haven qualities are especially evident during recessionary periods.