Latest news with #Milling-Stanley
Yahoo
7 days ago
- Business
- Yahoo
Veteran strategist unveils updated gold price forecast
Veteran strategist unveils updated gold price forecast originally appeared on TheStreet. Nervous investors have flocked to gold as a safe haven against inflation, geopolitics, and, most recently, tariff turmoil, and they have been well-paid for their move this year. Now, those same investors are anxious about whether the precious metal's run can continue. Gold is up nearly 30% this year, after gaining more than 25% in 2024; it's up 44% over the last 12 months. The three-year annualized average return on gold, as measured by SPDR Gold Shares () , is 21.4%, well above its historic averages; from 1971 to 2024, the annualized return on the shiny stuff was just under 8%. Great runs like this don't last forever, so fearing a regression to the mean is normal. Calm the nerves; one of the world's leading gold strategists says record price levels will be broken regularly through the end of the Milling-Stanley, chief gold strategist for State Street Global Advisors, said in a recent interview on 'Money Life with Chuck Jaffe' that gold will continue to make sense for investors for its attributes and potential. 'We still have a lot of geopolitical turbulence, and gold historically has tended to perform well during periods of geopolitical turmoil,' said Milling-Stanley. Milling-Stanley has spent some five decades overseeing gold's fit into investment portfolios and helped develop GLD, the world's first gold-backed ETF. Clearly, he knows a thing or two about the yellow metal. 'We still don't know where we stand with interest rates. … We don't know what the outcome of that is going to be. We still have an enormous amount of uncertainty on the macroeconomic front, as well as geopolitical shock. 'When faced with uncertainty,' Milling-Stanley added, 'I've always turned to gold in the past and I think it's served me well.' Gold's run-up over the last few years has coincided with higher inflation, but that hasn't fueled the run, according to Milling-Stanley. He says it only serves the role of an inflation hedge when the economy is 'suffering sustained high inflation,' which he defines as two or more years when prices rise persistently by 5% or more. That hasn't happened since the 1970s, so even if price hikes continue at their current pace—higher than the Fed's 2% target—gold isn't likely to respond to the uncertainty that Milling-Stanley says gives gold more upside potential than downside risk. 'The higher the uncertainty, the higher the upper limit,' he explained, noting that emerging tariff policies and the pall they've cast on global markets have forced the team at State Street to revise forecasts made last December, intended to last the whole of 2025, several times already. 'I guess the most important thing to say is it looks very much as if we've established a new floor in the gold price, somewhere above $3,000 an ounce,' Milling-Stanley explained. 'The floor last year was at $2,000 an ounce. That is a huge leap. With a new floor in place—gold didn't sustain a breach of the $2,000 level until February 2024 but has been higher ever since—and with the huge gains in the last 12 months, Milling-Stanley said he would not be surprised or even disappointed if gold consolidated a bit, trading in the $3,000 to $3,500 range for a while, simply holding value if market turmoil causes other asset values to drop. But, he noted, 'our bullish case suggests that we could actually take out whatever resistance is available at the $3,500 area, and possibly even trade as high as $3,900.' By that best-case forecast, gold would gain more than 15% from current levels, on top of its huge gains of the last two years. While price performance has been glitzy, Milling-Stanley noted that a gold allocation makes sense in most portfolios for its non-glamorous, protective attributes:Diversification, thanks to 'a zero relationship' to the movement of both stocks and bonds. Protection from stock market calamity. Milling-Stanley isn't predicting disaster, but said that macroeconomic uncertainties make it impossible to eliminate the potential for something catastrophic. 'If you look at, Black Monday in 1987, if you look at the bursting of the bubble in 2001-2002, you look at the global financial crisis of 2008, you look at the advent of Covid in 2020, equities took a significant downturn and gold performed very, very well,' Milling-Stanley said. Milling-Stanley notes that gold's momentum hasn't carried over to gold miners; he favors owning the physical metal, particularly because of concerns about market swings. Miners historically have sharply underperformed metals in big downdrafts. Gold typically holds up against weakness in the dollar. The value of the dollar is off roughly 9% this year, and it lost about 4.5% in the wake of the Liberation Day tariff announcements. Inflation protection in the unlikely event that tariff policies hit home harder and longer than anticipated with the Fed losing control on price hikes. 'I think people are still looking to gold for its protective attributes, rather than necessarily hoping that the price will go up so they can sell at a profit tomorrow or next week,' Milling-Stanley said. Still, he acknowledged that those timeless attributes shine brighter when attached to gold's enhanced profit potential strategist unveils updated gold price forecast first appeared on TheStreet on Jun 3, 2025 This story was originally reported by TheStreet on Jun 3, 2025, where it first appeared.
Miami Herald
7 days ago
- Business
- Miami Herald
Veteran strategist unveils updated gold price forecast
Nervous investors have flocked to gold as a safe haven against inflation, geopolitics, and, most recently, tariff turmoil, and they have been well-paid for their move this year. Now, those same investors are anxious about whether the precious metal's run can continue. Gold is up nearly 30% this year, after gaining more than 25% in 2024; it's up 44% over the last 12 months. The three-year annualized average return on gold, as measured by SPDR Gold Shares (GLD) , is 21.4%, well above its historic averages; from 1971 to 2024, the annualized return on the shiny stuff was just under 8%. Great runs like this don't last forever, so fearing a regression to the mean is normal. Calm the nerves; one of the world's leading gold strategists says record price levels will be broken regularly through the end of the year. Related: Veteran analyst who predicted gold prices would rally offers a blunt new forecast George Milling-Stanley, chief gold strategist for State Street Global Advisors, said in a recent interview on "Money Life with Chuck Jaffe" that gold will continue to make sense for investors for its attributes and potential. "We still have a lot of geopolitical turbulence, and gold historically has tended to perform well during periods of geopolitical turmoil," said Milling-Stanley. Milling-Stanley has spent some five decades overseeing gold's fit into investment portfolios and helped develop GLD, the world's first gold-backed ETF. Clearly, he knows a thing or two about the yellow metal. "We still don't know where we stand with interest rates. … We don't know what the outcome of that is going to be. We still have an enormous amount of uncertainty on the macroeconomic front, as well as geopolitical shock. "When faced with uncertainty," Milling-Stanley added, "I've always turned to gold in the past and I think it's served me well." Gold's run-up over the last few years has coincided with higher inflation, but that hasn't fueled the run, according to Milling-Stanley. He says it only serves the role of an inflation hedge when the economy is "suffering sustained high inflation," which he defines as two or more years when prices rise persistently by 5% or more. That hasn't happened since the 1970s, so even if price hikes continue at their current pace-higher than the Fed's 2% target-gold isn't likely to respond to inflation. Related: Veteran fund manager sends surprising message on the weak dollar It's the uncertainty that Milling-Stanley says gives gold more upside potential than downside risk. "The higher the uncertainty, the higher the upper limit," he explained, noting that emerging tariff policies and the pall they've cast on global markets have forced the team at State Street to revise forecasts made last December, intended to last the whole of 2025, several times already. "I guess the most important thing to say is it looks very much as if we've established a new floor in the gold price, somewhere above $3,000 an ounce," Milling-Stanley explained. "The floor last year was at $2,000 an ounce. That is a huge leap. With a new floor in place-gold didn't sustain a breach of the $2,000 level until February 2024 but has been higher ever since-and with the huge gains in the last 12 months, Milling-Stanley said he would not be surprised or even disappointed if gold consolidated a bit, trading in the $3,000 to $3,500 range for a while, simply holding value if market turmoil causes other asset values to drop. But, he noted, "our bullish case suggests that we could actually take out whatever resistance is available at the $3,500 area, and possibly even trade as high as $3,900." By that best-case forecast, gold would gain more than 15% from current levels, on top of its huge gains of the last two years. While price performance has been glitzy, Milling-Stanley noted that a gold allocation makes sense in most portfolios for its non-glamorous, protective attributes: Related: Rich Dad Poor Dad author makes surprising silver, gold price forecast Diversification, thanks to "a zero relationship" to the movement of both stocks and from stock market calamity. Milling-Stanley isn't predicting disaster, but said that macroeconomic uncertainties make it impossible to eliminate the potential for something catastrophic. "If you look at, Black Monday in 1987, if you look at the bursting of the bubble in 2001-2002, you look at the global financial crisis of 2008, you look at the advent of Covid in 2020, equities took a significant downturn and gold performed very, very well," Milling-Stanley said. Milling-Stanley notes that gold's momentum hasn't carried over to gold miners; he favors owning the physical metal, particularly because of concerns about market swings. Miners historically have sharply underperformed metals in big downdrafts. Gold typically holds up against weakness in the dollar. The value of the dollar is off roughly 9% this year, and it lost about 4.5% in the wake of the Liberation Day tariff protection in the unlikely event that tariff policies hit home harder and longer than anticipated with the Fed losing control on price hikes. "I think people are still looking to gold for its protective attributes, rather than necessarily hoping that the price will go up so they can sell at a profit tomorrow or next week," Milling-Stanley said. Still, he acknowledged that those timeless attributes shine brighter when attached to gold's enhanced profit potential now. Related: Veteran fund manager who predicted April rally updates S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
16-04-2025
- Business
- Yahoo
Gold price today, Wednesday, April 16, 2025: Gold opens with new high
Gold (GC=F) futures opened at $3,248.40 an ounce on Wednesday, up from Tuesday's close of $3,218.70. Gold's highest opening price in history follows ongoing uncertainty about changing U.S. tariff policies and the U.S. inflation outlook. As the U.S. economy settles into 10% and higher tariffs on all imports, some businesses are already raising prices or adding tariff-related surcharges. Meanwhile, consumers are stocking up on cars, electronics, and other in-demand products ahead of potential further tariff hikes. Rising inflation risk has historically been good for gold prices, as many consider the precious metal an effective inflation hedge. The gold futures opening price of $3,248.40 an ounce on Wednesday is almost 1% higher than Tuesday's closing price of $3,218.70. In the past month, gold is up more than 8% from its opening price of $2,994.40 on March 14. Over the past year, gold has gained more than 36% from its opening price of $2,384 on April 16, 2024. Don't forget you can monitor the current price of gold on Yahoo Finance 24 hours a day, seven days a week. Want to learn more about the current top-performing companies in the gold industry? Explore a list of the top-performing companies in the gold industry using the Yahoo Finance Screener. You can create your own screeners with over 150 different screening criteria. If you want to invest in gold but don't want to deal with safely storing physical gold, State Street Global Advisors chief gold strategist George Milling-Stanley told Yahoo Finance that gold ETFs are a great option. 'I think it's important to remember that ETFs are physical gold,' said Milling-Stanley. 'But the only difference between the ETFs and actually owning bars and coins is that you don't have physical possession of the gold that backs gold ETFs. Somebody else looks after that. And that is actually an advantage for an awful lot of investors who see problems with, well, how do I custody this, where do I keep it, do I insure it, do I bury it in the backyard, put it in a safe, what do I do with it?' Gold ETFs are funds that invest in gold mining stocks or physical gold. Their advantages include: Easy to store. Like gold mining stocks, ETF shares are essentially digital assets with no storage requirements. Greater liquidity. Shares of the most popular gold ETFs, like SPDR Gold Shares ($GLD), are heavily traded which implies good liquidity. Tied directly to gold prices. ETFs backed by physical gold can be less volatile than gold mining stocks or gold mining ETFs. Two disadvantages of gold-backed ETFs over physical gold are: Fund fees. Funds charge fees, which dilute returns over time. For context, the expense ratio of SPDR Gold Shares is 0.40%. This translates to $4 in fees annually for every $1,000 invested. No utility as a medium of exchange. As with gold mining stocks, you probably cannot use ETF shares to trade for food in an economic emergency. Learn more: How to invest in gold in four steps Whether you're tracking the price of gold since last month or last year, the price-of-gold charts below show the precious metal's steady upward climb in value. Historically, gold has shown extended up cycles and down cycles. The precious metal was in a growth phase from 2009 to 2011. It then trended down, failing to set a new high for nine years. In those lackluster years for gold, your position will negatively impact your overall investment returns. If that feels problematic, a lower allocation percentage is more appropriate. On the other hand, you may be willing to accept gold's underperforming years so you can benefit more in the good years. In this case, you can target a higher percentage. The precious metal has been in the news lately and many analysts are bullish on gold. In February, Goldman Sachs expected gold to gain another 8% in 2025, after surging more that 40% in 2024. It's already blown past that 8% mark. Worries about tariffs and their impact on the U.S. economy are a primary factor. If you are interested in learning more about gold's historical value, Yahoo Finance has been tracking the historical price of gold since 2000.
Yahoo
01-03-2025
- Business
- Yahoo
Gold prices see massive vote of confidence
Gold prices likely won't lose their shine, even after a 40%-plus run over the last 12 months. The SPDR Gold shares, or GLD, the largest exchange-traded fund backed by physical gold, saw the largest one-day inflow ever of $1.9 billion on Feb. 21, 2024. "We believe the demand is across the board. We see institutions either adding to or establishing long term strategic asset allocation type positions. We see individual investors doing the same. We see a certain amount of FOMO. There's a fear of missing out whenever the price gains momentum to the upside" George Milling-Stanley, Chief Gold Strategist at State Street Global Advisors, told FOX Business. He highlights three longer-term growth drivers aligning for more gold gains this year. Why Banks Are Flying Gold Bars From London To New York "We have continued very strong central bank buying for official reserves. This has been a feature of the last 15 years at the gold market, and it's been very important, ranging anywhere from 10% to 25% of total end-user demand in any given year. And I think that's very important support for the price whenever it's shown any sign of weakening", Milling-Stanley explained. "Central bank buying basically doubled in 2022 to more than 1000 metric tons," he added. Read On The Fox Business App Trump Backs Tour Of Fort Know To Check On Gold "Additionally, we've seen a big increase in investment in the emerging markets and especially China, but in India and elsewhere over the last year, year and a half, toward the end of last year, that was joined by a big increase in emerging market jewelry demand as well, again, across the emerging markets" he added. "We've seen a revival in investment in gold in the Western world, in Western Europe and North America, I think mostly because of concerns about the outlook for the US economy and for the European economies, for that matter." Gold has pulled back from its record $2,947 an ounce; still Milling-Stanley is forecasting the yellow metal could trade between $2,900-$3,100 later this year. Inflation remains a wildcard. The consumer price index in January rose 3%, more than expected. Prices remain elevated for items like eggs, beef and transportation. On Friday, the Federal Reserve's preferred inflation measure is expected to remain elevated. Annually, the PCE Price Index is seen rising 2.5% on an annual basis, with the core PCE Price Index up slightly more at 2.6%, as tracked by Trading article source: Gold prices see massive vote of confidence Sign in to access your portfolio
