Is gold about to crash?

Thursday, 6 October 2016

“The way we think about it is, gold looks to be 20 to 25 percent overvalued,” Chadha said in an interview with Bloomberg TV on Tuesday. “Positioning is very, very long.”

When he analyzed how gold is valued relative to the U.S. dollar and global growth, he found that the asset stood out in the entire oil and commodity complex.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.