Gold: Precious metals lead lost-decade playbook – TD Securities
TD Securities’ Izidor Flajsman highlights that during historical US equity ‘lost decades’, Precious Metals, especially Gold, have delivered strong real returns while broad Commodities were more mixed. Gold outperformed in both valuation-driven and inflation-shock regimes and TD’s Commodities team now projects Gold at $5100/oz by Q1 2027, implying more than 25% upside from current spot levels.
Gold outperforms across lost decades
"Precious metals led across 'lost decade' regimes, with gold the standout performer."
"Commodities have been the flip side of equities and duration — dead money in a normal regime, best house on the block in a lost decade."
"The catch: based on the data below, this is a precious metals story, not a "commodities" story."
"Gold is the standout (+7.7% ann.) because it works in both regimes."
"Going forward, interestingly, we expect gold to hit $5100/oz in Q1 2027, which is over 25% higher from the current spot."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Elon Musk sleeps at construction site! Going all out for AI infrastructure
AI investment frenzy ready for another surge? With the Fed rate hike decision settled, reverse buying appears as US Treasury bonds face their "most painful moment"
Bob Michele from JPMorgan Asset Management stated that his team has started buying long-term bonds from the United States, Japan, and Australia, saying that current prices are "simply too cheap." Michele believes that a series of central bank actions and potential stabilization trends in the Middle East are key driving factors supporting the debt market.
"The New Bond King": The moment of reckoning is inevitable; a fully defensive stance should be adopted in the next 6 to 9 months
Gundlach believes the market has entered a "difficult phase." The excessive expansion of AI capital expenditures intertwined with the rapidly growing private credit market is bound to lead to a reckoning; credit spreads related to AI have already widened significantly, and the complex risk exposures between private credit and the insurance industry will trigger severe consequences in the next downturn. He has reduced his portfolio's AI exposure to zero and shifted toward equal-weight equities, high-quality bonds, local currency emerging market debt, and gold commodities.
Crypto prices
More
