Schroders’ Wyke Sees Gold Bull Market Intact in Bond Selloff
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Gold’s bull market is intact and prices will reach a new high as declines in bonds and equities boost demand and investors seek insurance against economic and political risk, according to Schroder Investment Management Ltd.
Bullion tumbled into a bear market in April and is heading for the worst year since 1981 amid concern the U.S. Federal Reserve will taper stimulus and as some investors lost faith in the traditional store of value. Prices touched the lowest since September 2010 last week after Fed Chairman Ben S. Bernanke said the central bank, which buys $85 billion of debt each month, may begin reducing purchases this year and end the program in 2014 should the economy improve further.