Gold still looks good, but copper and oil look better – USBWM – by Neils Christensen (Kitco News – March 9, 2021)

(Kitco News) – With equity markets back at record valuations and bond yields holding above 1.5%, investors appear to be pricing in perfection when it comes to a robust economic recovery. However, according to one market strategist, this could be good for gold.

In a recent telephone interview with Kitco News, Rob Haworth, senior investment strategist at U.S. Bank Wealth Management, said that there is a lot of optimism in the marketplace due to expectations of a faster-than-expected economic recovery.

However, if there are any issues with the continued rollout of vaccines or hiccups with economic activity, that sentiment could quickly sour and drive gold prices higher.

“Market expectations are that by September, the economy will reopen, and inflation takes off,” said Haworth. “I think there’s still enough skepticism in that narrative.

The Fed may have to react to these higher real rates and tightening financial conditions. That could be the thing that the shore is up gold prices.”

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