Gold has performed very well as part of the broad-based global assets rally, rising as much as 36.4% this year, outperforming the Standard & Poor’s 500 index as well as the tech-heavy Nasdaq Composite index.

This month, the price of gold breached the US$2,000-an-ounce milestone for the first time ever, though prices have fallen back a little since. Does this gold rally have legs?

We think so. Just as we thought the US dollar could be looking at a multi-year downtrend, gold could be on a multi-year uptrend. As we discussed last week, gold, like many globally traded commodities, is denominated in US dollars. As such, weakness in the US dollar is one supportive factor for higher gold prices.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook