US recession ‘the biggest concern’ amid Washington-Beijing trade conflict, warns Standard Chartered…”“But last month, we upped gold to a preferred status to reflect that…”
RT.com
26 Aug, 2019
As the trade war between the world’s two largest economies heats up again, the probability of a US recession is now “the biggest concern,” says Standard Chartered Private Bank’s strategist Clive McDonnell.
The chance of such a recession in the next 12 months has risen from 25 percent to “as high as 40 percent,” according to McDonnell.The head of equity strategy at Standard Chartered said in an interview with CNBC that he was telling clients to consider putting their money in gold amid the escalating uncertainty.
“Gold was an asset class that for many, many years… we shunned,” he said. “But last month, we upped gold to a preferred status to reflect that… increased anxiety, increased uncertainty.”
The strategist said: “I would not be surprised if — and I emphasize if — the US were to slide into recession that we would see… upwards of $2000 on the gold price.”
According to McDonnell, “In an environment where… all assets aside from US Treasuries… would be weakening… gold would be… an asset that could re-rate further.”
The price of gold skyrocketed to more than a six-year high as panicked investors seek a safe haven for their assets over fears that Washington was ready to escalate the raging US-China trade war.
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