commodities gold copper oil Gold's disappointing price action is a sign that metal is anticipating enduring deflation – Bloomberg Intelligence
After falling 3% last week, gold was trading near three-week lows Monday as the strong U.S. dollar continued to pressure the metal. But there could also be another reason for gold's poor price performance, according to Bloomberg Intelligence.
McGlone added that gold is still early in its recovery against copper and crude oil, with the outlook for the precious metal looking promising. "Gold has appreciated vs. crude oil since the financial crisis, and the trend could be drawing fuel from the relatively discounted levels reached in 1H. The gold-to-crude ratio appears similar to the bottom in 2018, and a primary reason: the paradigm shift of North American oil supply exceeding demand," McGlone noted.