Dollar Is Overvalued, ‘Extremely Attractive

by Marie Rodriguez

Gold bulls’ frustrations apart, that is a “beautiful environment” to set up lengthy-gold positions, in keeping with Standard Chartered. We are very positive on gold, each within our method teams and inside our commodity research teams. Even with the healing that we’ve visible in equity prices and nominal bond yields over the last few weeks, actual or inflation-adjusted results remain extraordinarily low. And that’s traditionally a higher indicator for gold,” Standard Chartered global head of FX, rates and credit score studies Eric Robertson informed Bloomberg on Monday.

Investors had been discouraged using gold’s rate actions as of past due, with the metal unable to sustainably smash its critical mental degree of $1,300 an oz. June Comex gold futures have been final trading at $1,290.50, down zero.06% at the day, amid a lack of turbulence on the geopolitical front.

Keeping fees down is the resilient U.S. Dollar and rallying equities, Robertson pointed out.

“One of the matters that every one buyer have struggled with this year is the reality that danger assets, whether it’s miles equities or credit score, have run dramatically better in an environment where, especially again to Q4 and early Q1, we had quite a bit of bad sentiment concerning the worldwide boom,” he stated. “Our expectation is that threat belongings have probable visible the better part of their profits for now.” But, this is not impacting Robertson’s outlook in the slightest, as he initiatives re-calibration between positioning and market pricing.

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