SHANGHAI, May 31, 2017 /PRNewswire/ -- Mason Baxter, the emerging markets wealth manager, has announced the imminent release of its newly compiled report on the outlook for the price of gold amid broad market expectations of rising US interest rates in 2017.
The Mason Baxter gold report is the first in a new series from the Shanghai, China-headquartered firm that will examine investment classes with significant upside potential it expects to manifest over the coming months.
With commodities recovering from an extended rout that started in 2011, the outlook for the asset class has generally turned positive. Gains in the prices for base metals like iron ore have been helped by an improving mood of optimism surrounding the Chinese economy, but it is gold which has become one of the best-performing metals of 2017 thanks to concerns over the Trump administration's ability to deliver on campaign promises and mounting geopolitical tensions between the US and North Korea.
"There are some very real concerns over the near-term outlook for US interest rates because economic data emerging from the country appears to point to growing weakness," says a Mason Baxter commodities analyst. "Slowing growth will almost certainly put the brakes on any plans the US Federal Reserve has for future interest rate hikes," he added.
Additionally, the report will cite robust demand for gold in traditional markets like India and China as presenting a strong case for investors to increase exposure to the asset.
"Despite the three US interest rate hikes we've seen since last December, it's worth remembering that, at under 1%, rates are still incredibly low and they have a very long way to go before they return to that country's historical average at around 3 or 4%."
"It's our view that the US economy will be unable to withstand interest rates at those levels for some time into the future and, frankly, we believe it's likely the increases we've seen thus far will almost certainly need to be reversed if growth slows and the US economy goes into a recession," said the Mason Baxter analyst.
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SOURCE Mason Baxter