Global investment bank UBS published a report Monday highlighting the enduring value of gold as a hedge, despite a recent pivot among speculators toward equities following the U.S. presidential election. While the market appears optimistic, UBS cautions that policy uncertainty under the new administration remains high.
Noting that a downtrend in the U.S. dollar and Treasury yields could bolster gold prices over the coming months, the report states:
Crucially, the fundamental supports for the demand for gold as a hedge and diversifier remain very much intact.
UBS advises investors to remain cautious, noting the unpredictable aspects of the new administration’s policies. “Investors need to remember that much is still unknown about Trump’s policy agenda, including which existing policies might be reversed. This uncertainty is very much double-edged, especially given the market’s lopsided pricing in of risks. Investors should continue to retain gold as a portfolio hedge for the following reasons,” UBS detailed.
https://news.bitcoin.com/ubs-reveals-when-to-buy-gold-dips-as-markets-signal-unseen-risks/
Inflation worries come back to haunt bond strategists after Trump victory: Reuters poll
BENGALURU (Reuters) – Donald Trump’s presidential election win has forced bond strategists to make a material change in their outlook towards higher longer-dated Treasury yields, a Reuters poll found, as the risk of a U.S. inflation resurgence escalates.
Since Trump’s victory, the benchmark U.S. 10-year Treasury yield has risen nearly 15 basis points. That stems from expectations of his proposed policies of tax cuts and tariffs, which, according to estimates from the Committee for a Responsible Federal Budget, could push up U.S. fiscal debt by $7.75 trillion over the next decade.
https://finance.yahoo.com/news/inflation-worries-come-back-haunt-125933216.html
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