Commodities will be outperformers in 2020 due to a host of fundamental macroeconomic factors, this according to John LaForge, head of real asset strategy at Wells Fargo.
“Gold is really moving very closely with interest rates, particularly the long-end of the curve. So that’s what I would focus on when it comes to gold,” LaForge told Kitco News.
On the best commodities for 2020, LaForge favors platinum.
“Platinum would be number one. Gold would be number two. Platinum has been left for dead. Look at palladium. Palladium is at $1,800, absolutely incredible,” he said, adding that silver is “tethered to gold.”
On the prospect of a recession, LaForge said that it is unlikely it will happen next year, but the chances are climbing.
“It’s still a low probability, but it’s 11 years almost now into an economic expansion, the longest in history. So, we’re inching closer to that probability, we don’t think it’s next year, so we’re saying no recession next year, but the probability is increasing,” he said.