“Our commodities team believes that the dislocation between the gold prices and U.S. rates is here to say,” according to Goldman Sachs. “Based on empirical data for the past six tightening cycles, gold has outperformed post rate hikes four times.”
Over the past 20 years, gold has outperformed alternative and traditional assets, such as developed market stocks, hedge funds, developed markets debt, global real estate investments and the broader commodities complex, according to WGC data.
“The market is currently pricing in three rate hikes for 2018 — and that remained the baseline forecast from the U.S. central bank, but at least one more increase was added in the following two years,” reports CNBC.
For more information on the gold market, visit our gold category.
Tom Lydon’s clients own shares of GLD.