A new report from Mitsubishi has confirmed what you probably already know if you’re a regular reader – ‘smart money’ invests in gold.
Jonathan Butler, head of business development at Mitsubishi said in this week’s update that, “The fact that the ‘smart money’ continues to favour bullion, even as equities and other risk assets hit new highs, indicates the long-term haven status that many investors attach to gold, especially in an environment where synchronized global growth is becoming the consensus view. Fears that economic optimism may have got ahead of the data will be one mildly gold-supportive narrative for 2020, another will be the possible bumps in the road, from a disorderly Brexit to a souring of U.S.-China relations. Investors will also be looking for any signs of a change to the Fed’s basic policy of keeping rates on hold for much of next year.”
Butler also said that in the event that a trade deal agreement is reached during his presidency, Donald Trump could begin moves to weaken the US dollar in order to strengthen exports, which would also impact on gold’s attractiveness.
