Gold Bug: Interest Rates and I M

gold bug: Recent losses for gold may have dented investor confidence, according to Market Watch. Gold GCZ6, -0.47% is up 18% this year, but the first full week of October marked its worst seven-day performance in over three years; it also posted a three-month loss of nearly 6% on a continuous basis. The precious metal should be a lot more expensive when the likelihood of a global financial collapse and a move toward negative interest rates is accounted for, says Global Macro Investor founder Raoul Pal, who now sees a U.S. recession within 12 months. Uncertainty about Brexit and the timing of a Federal Reserve rate hike triggered a rush into the dollar, which often moves inversely to the metal. I'm not a gold bug, the former GLG Global Macro Fund co-manager — who is also watching the dollar closely — but this is the currency I would choose now. As we get to negative interest rates, gold is a good place to park your cash, said Pal, who discussed his outlook with Market Watch in a September interview and a follow-up conversation over email. (news.financializer.com). As reported in the news.