The Fed’s policy pivot in 2019 has provided one of the biggest bullish catalysts in years. The coronavirus-induced market meltdown has accelerated the move from risk-on to risk-ff assets. Gold finished the 1st quarter, up 3.4% vs. -23% for the Dow Jones Industrial Average.
The historic $2 trillion economic stimulus deployed to combat the fallout from the coronavirus is sure to provide a tailwind for gold and the entire metals-and-mining sector. With the fundamentals shifting back in gold’s favor, the timing is perfect. And if past form holds true, investors who act now could reap outsized gains in the years to come.