6 August
Gold’s surge may signal economic weakness — MSN
Gold’s record premium over the Bloomberg Industrial Metals Index, the widest since 1991, could be a warning sign for the global economy, says Bloomberg Intelligence strategist Mike McGlone.
While gold has risen 40% in the past year, prices for industrial metals such as copper, aluminum, and zinc have fallen about 10%. On Friday, gold traded at $3,313 an ounce, according to MSN.
Still, the picture is mixed. US equities remain near record highs and Treasury yields are rising, not falling. Gold’s multiyear rally also reflects steady buying by central banks diversifying away from the US dollar. McGlone notes that this outperformance could easily point to a bubble in gold and not to broader economic risks.
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