Normalisation: you wouldn’t start from here, Strategic outlook for gold
Thursday 24 September 2020 – Vol.11 Ed.39.4
Commentary: Normalisation – don’t start from here
By Ellie Groves in London
As the world enters a second wave of Covid-19, central banks are reviewing their crisis toolboxes and exploring ways to support the economy. Earlier this month, OMFIF held two meetings on the role of the ECB and the political implications of the European recovery fund. Participants agreed on the need for expansionary monetary policy. However, some spoke of the importance of moving towards normalisation. Policy-makers will need to carefully consider how to move on from the crisis.
Video: Strategic outlook for goldJohn Reade, chief market strategist at the World Gold Council, discusses the strategic outlook for gold and recent trends in the yellow metal market. He examines gold’s value as a source of returns, liquidity and diversification, underscoring its long-term performance and lack of correlation to other major asset classes, such as US equities. An average US pension fund, Reade points out, would have enhanced their risk-adjusted returns with a higher allocation to gold over the past decade.
Watch the recording on the website.
