The possibility of renewed pressure on gold. For most of 2014 gold has rallied on the back of the unexpected drop in rates. In an environment in which the dollar is stronger and real, or inflation-adjusted, rates are rising, gold is likely to come under renewed pressure, a trend already evident last week when the precious metal pulled back from a six-month high.
As such, I continue to advocate caution toward gold as well as to the short to middle part of the Treasury curve. You can read more about my investment views in my Investment Directions monthly market outlook.
Source: Bloomberg, BlackRock research