Gold first commodity to rise from bear market?
- The yellow precious metal will be the first commodity to pick up after plunging in the last few years, The Lindsey Group's chief market analyst Peter Boockvar said on Monday.
"Gold prices will be the first to recover (U.S. dollar had great 2014, but gold has stopped going down) and oil prices the last," Boockvar said in a note.
As commodity prices have fallen, he expects precious and industrial metals, as well as agriculture to turn higher first, while energy will lag for up to two years.
Gold rallied last Tuesday to above $1,200 before ending the week below that benchmark level. The precious metal traded near $1,187 on Monday morning, off 37 percent from a high of $1,831.70 an ounce in August 2011.
Denominated in U.S. dollars, gold usually falls when the dollar strengthens. Contrary to consensus for a "King Dollar" in 2015, Boockvar said that a stronger U.S. dollar will only continue versus some currencies.
Publish date : Tuesday 6 January 2015 21:27
Story Code: 19069