Gold Fever Breaks Out in New ‘Bubble Game’ as Fed Preps a Cut
- SocGen’s Bokobza touts bullion to protect risk-on portfolios
- Yellow metal near six-year high amid demand for global havens
One kilogram fine gold bars sit stacked in the precious metals vault at Pro Aurum KG in Munich, Germany, on Wednesday, July 10, 2019.
Photographer: Michaela Handrek-Rehle/BloombergThis article is for subscribers only.
A top-ranked strategist at Societe Generale SA has a plan for clients fretting that a fresh wave of monetary easing will fan a bubble across assets.
Ride the bull until 2020 -- when a U.S. recession and a debased dollar will make gold the perfect doomsday hedge, says Alain Bokobza. It’s the latest warning for investors betting that the Federal Reserve will help extend the business cycle with stimulus this week, and a sign of how gold fever is breaking out from London to New York.