“Investors were panicking about the trade war, global growth and Brexit in the summer and now they realized the situations aren’t that bad. I’d recommend investors to focus more on equities and high-yielding bonds in the coming three to six months.”
According to Bauer, multiple Fed rate hikes and the gradual unwinding of the U.S. dollar have created an ideal environment for gold to spike.
“The Fed just cut rates again and signaled unless inflation picks up, the likelihood of any rate hike is not in the cards. Bond yields have been ranged bound and the dollar has declined off of its recent highs. The lower interest rates go, the more valuable gold becomes as the only true store of wealth.”