Gold: safe-haven role firmly established
By GCRU Gold News on Friday, November 29 2019, 00:31 - Permalink
With negative rates a clear driver of additional financial demand for gold as an alternative to traditional safe havens, the downside risk for the gold price is limited.
We believe the negative yield environment will remain in place for euro and Swiss franc government bonds for the near future. This has profound implications for long-term portfolio construction: gold becomes a necessity rather than an optional allocation. Specifically for CHF or EUR denominated portfolios, where the yield environment is particularly low, gold will have an important structural role to play as a portfolio diversifier and a hedge against equity drawdowns.