Gold on six-year high, with observers predicting ‘multiyear bull market’ – by Niall McGee (Globe and Mail – July 1, 2019)

After about three years of going nowhere, gold is once again the commodity du jour and some observers predict the rally is just getting going.

Since hitting a record high in late 2011 just shy of US$1,900 an ounce, gold has largely been out of favour among investors. As recently as August of last year, the precious metal was trading at US$1,170, almost 40 per cent below its peak.

But last week, gold futures hit a six-year high, driven on by expectations of interest-rate cuts and a weaker U.S. dollar. In the past month alone, gold has jumped 10 per cent, catapulting to more than US$1,400 an ounce.

Traditionally seen as a safe-haven investment that increases in value during periods of market turbulence, gold has lately benefited from an uptick in international political uncertainty. U.S. President Donald Trump recently threatened Iran with “obliteration,” not long after it shot down a U.S. military drone.

“We’ve ended a multiyear bear market and I think we are on the cusp of a multiyear bull market,” said Dennis Gartman, editor and publisher of daily market newsletter The Gartman Letter.

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