Commodities now: All roads lead to gold?
“Gold’s outlook looks rosy. The precious metal should benefit from late-cycle dynamics, which tend to favor real assets over stocks. A weaker dollar could help too and [TS Lombard’s Konstantinos] Venetis said what appears to be in the works today is the opposite of what happened following the 2013 taper tantrum: ‘Back then, the currencies of current account-deficit emerging markets came under pressure as the dollar strengthened from a low point, deflationary headwinds spread and commodity prices suffered. Now, the currencies of large current account-surplus developed markets are appreciating as the dollar retreats from lofty levels, inflation picks up speed and commodity prices increase.’”