Gold price could see '2000 flashback' as most commodities reverse in second half of 2022

7.13.22 - Plan Now for Recession

Gold last traded at $1,736 an ounce. Silver at $19.24 an ounce.

News Summary: Precious metal prices rose following the June inflation report showing an official rise of 9.1%. U.S. Stocks gyrated lower as investors were surprised by the steepest rise is prices in 40 years.

Bloomberg/Kitco--"Despite gold kicking off the second half of the year with a drop below $1,800 an ounce, Bloomberg Intelligence sees the precious metal moving higher versus broader commodities, which are at risk of a reversal.

Crude oil is the commodity facing the biggest reversion risk in the second half of 2022, while gold is among the few that could benefit and see the $2,000 an ounce levels again, according to Bloomberg Intelligence senior commodity strategist Mike McGlone.

Bloomberg Intelligence looked at whether gold got too cold while commodities got too hot during the year's first half. And after looking at all the data, McGlone noted gold is trend ready while the rest of the commodity market will be coming down from its peaks.

'Gold's moribund performance is clearly different from past high-velocity commodity rallies. But the metal looks poised to come out ahead ... Juxtaposed on the chart is gold hovering around its 100-week mean for almost a year. Our take: Gold is trend ready, while broad commodities risk reversion to their historic mean,' McGlone wrote. 'The last similar period of sluggish gold vs. strong commodities was in 2000 as the internet bubble burst and the precious metal jumped into an extended bull market.'"