BNY Mellon's Alicia Levine discusses the 'new normal' of inflation and economic growth in the US. Admiral Stavridis predicts Israel's measured response to Iran's attacks. Citi's Aakash Doshi talks about the rally in gold with a price target of $3,000/oz.
The 'new normal' in US economy points to inflation and growth challenges, as identified by Alicia Levine from BNY Mellon.
Gold's increasing appeal as a diversified asset is fueled by geopolitical uncertainties and central bank acquisitions, with a projected price spike to $3,000/oz.
Deep dives
Insights into the Daily Market Update
Get a concise daily market update from Charles Schwab, summarizing US and global economic news, stock updates, monetary policy decisions, and key statistics impacting trading. The podcast, Schwab Market Update, offers a 10-minute information-packed recap hosted by Keith Lanceford. It covers market insights with a focus on economic trends and stock market dynamics.
Impact of Gold on Diversification Strategies
As gold rallies, it serves as a significant asset for diversification due to geopolitical tensions and record equity levels. Financial flows are aligning with robust physical demand for gold, bolstering its appeal as a reserve diversifier and asset for monetization through options. Central banks' increased gold buying post-financial crises enhances gold's role as a non-yielding, yet credit risk-free alternative fiat and a critical component of de-dollarization strategies.
Gold's Role amidst Market Volatility and Financial Flows
Gold's ascent to a potential $3,000 per ounce in the upcoming year reflects shorter duration relationships between treasuries and gold. Institutions are turning to gold as an effective portfolio diversifier amid equity market highs and uncertainty. Central bank acquisitions of physical gold underscore a structural shift, setting a new base floor for gold prices and mitigating price volatility, aligning with a renewed interest in gold as a valuable asset class for both retail and official sectors.
-Alicia Levine, BNY Mellon Head of Investment Strategy -Admiral James Stavridis, The Carlyle Group Vice Chairman, Global Affairs -Aakash Doshi, Citi North America Head of Commodities Research
BNY Mellon's Alicia Levine says the state of inflation and economic growth signifies a 'new normal' for the US economy. Former NATO Supreme Allied Commander James Stavridis says Israel will respond to Iran's missile and drone attack in a 'measured way'. Citi's Aakash Doshi discusses the rally in gold and why he sees a price target of $3,000/oz in the near future.