Look Out Above: Gold Rally Shows No Sign of Flagging

Forecasts say the yellow metal may reach $1,500 an ounce in coming months.

That “barbarous relic” is what John Maynard Keynes famously called gold. But despite the celebrated 20th century economist’s scorn for the precious metal, which for years underpinned currencies worldwide, its popularity has never ended. Despite ebbs and flows, it remains a sturdy asset class.

So today, amid all manner of economic worries and international tensions, investors once again are turning to the glittering metal as a haven, with the gold spot price hitting $1,400 an ounce Friday before closing at $1,396. Although its price may be volatile over time and it generates no interest or dividends, this particular commodity has great appeal when people are wringing their hands.

In passing the $1,400 level for the first time since September 2013, gold’s rally shows every sign of continuing, according to numerous forecasters. The metal’s price and that of an exchange-traded fund that tracks it mark “a breakout and potentially a leg nicely higher,” Bespoke Investments writes in a research note.

The Australia and New Zealand Banking Group expects gold to reach $1,500 next year. Citigroup thinks that will happen by year-end. Already, gold is up 9.22% in 2019.

For more stories like this, sign up for the CIO Alert newsletter.

“Gold does well in a period of dollar weakness, inflation, and economic uncertainty,” Peter Schiff, chief global strategist for Euro Pacific Capital, told Barron’s. “We are about to get all three. “

Well, the dollar has dipped a bit lately amid talk of the Federal Reserve lowering short-term interest rates. And global economic growth appears to be decelerating— with the threat posed by the US-China trade war a factor. Inflation, though, seems to be stuck below 2% annual growth in the US, Japan, and Europe. Still, two out of three ain’t bad.

This century has given gold quite a ride. In the 1990s, it was almost laughable. Gold’s spot price was $260 in 1999. But then the dot-com bust, the housing crash, the financial crisis, and the Great Recession sent the metal soaring. It peaked in 2011, amid the European debt mess, at around $1,900.

As economies improved all over the globe, it slid to about $1,200 in 2015, popped up a bit to $1,350 during the oil slide that followed, and drooped anew to $1,200 last summer.

Then it began its current romp. Euro Pacific’s Schiff called gold “the ultimate safety net.” As long as people believe that, it never will be a relic.

Related Stories:

Is it Gold’s Time to Shine?

Credit Suisse Points to Weakening of Commodity Fundamentals in May

Applying Alternative Beta Strategies to Commodities

Tags: , , , ,

Fort Worth Employees’ Retirement Fund Gets a New Executive Director

Benita Falls Harper, who’s been serving as interim since December, was unanimously elected by the board.

Benita Falls Harper



The new executive director for the Fort Worth Employees’ Retirement Fund is Benita Falls Harper, who has served as its top lawyer and interim chief.

Harper was chosen unanimously by the board, the organization said. She had been the $2.3 billion plan’s interim executive director since December, when former head Joelle Mevi left for undisclosed reasons. Harper was also the organization’s legal counsel since July 2017.

Todd Cox, who chairs the Texas-based fund’s board of trustees, said her diverse experience in public pensions, law, and municipal government will strengthen the fund’s direction.

At her now-official role, Harper will handle various levels of administration such as board policy implementation, investment oversight, benefits administration, stakeholder outreach, and staff development, said the fund.

Never miss a story — sign up for CIO newsletters to stay up-to-date on the latest institutional investment industry news.

Before the pension plan, Harper was a judge for Fort Worth’s Southwest Municipal Court. She was also an attorney with Akin Gump Strauss Hauer & Feld, the Fort Worth City Attorney’s office, and the Fort Worth Human Resources Department. Harper is also a former research editor for the Houston Law Review.

The Fort Worth Employees’ Retirement Fund’s asset allocation as of March 31 was 65.1% growth strategies (growth and high growth), 15% capital preservation, 9.86% diversification, 7.60% inflation, 1.63% liquidity, and 0.22% liquidating strategies.

Related Stories:

Texas Municipal’s Executive Director to Retire Next May

 

Tags: , , ,

«

Close
Distributed Energy Conference
Welcome! Stay sharp with PRNEWS Daily Update, delivered every morning to your inbox. It's FREE