Gold remains firmly in a bull market. Traditional macroeconomic drivers – long-term real bond yields, the value of the US dollar, and asset market volatility – are taking a back seat to ongoing economic and political uncertainty, leading to a portfolio re-allocation towards safe-haven assets. This doesn’t mean macroeconomic factors aren’t important, just that they’re not the driving force of the rally. Interest rate cuts from the US Federal Reserve and/or a decline in the US dollar and/or a bout of risk aversion leading to a ‘flight-to-quality’ are all likely to act in support of gold. Gold is currently in mild ... (full story)