With the world in the midst of escalating geopolitical tensions and other strong influences, it is no surprise that commodities are feeling this effect as well, with the price of gold recently soaring to its all-time high (ATH), Bitcoin (BTC) growing 160% this year, while other commodities are dropping, suggesting a ‘great reset.’
Indeed, according to the senior Bloomberg commodities expert Mike McGlone, commodities are tilting toward a great reset in which gold is rising, and most of its competitors are falling, with the “risk of that trajectory accelerating in 2024,” as he explained in an X post shared on December 27.
Conditions for rebound
Furthermore, as he added, there are certain factors that need to fall into place for a possible rebound of the commodities that have been trending downwards in 2023, unlike the price of gold and that of the flagship decentralized finance (DeFi) asset, Bitcoin:
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“It may take some combination of a reversal of China’s property crisis and Europe’s tilt toward recession, a resilient US stock market, and a weak dollar to stall the downward reversion process in most commodities.”
That said, he also noted that the “reverberations from the price spikes of Russia’s invasion of Ukraine and the most aggressive central bank tightening period in history may remain the predominant commodity headwinds in 2024,” referring to the policy actions of the United States Federal Reserve.
As a reminder, McGlone has been warning of a ‘great reset’ and a looming severe recession for the US economy in 2024 as the result of a combination of factors, including an aggressive monetary policy tightening, strong labor market, and other metrics, such as consumer spending and income.
Earlier, the commodities strategist had also shared his view that the spot gold price rally was far from over, suggesting it could surge to as high as $3,000 per ounce in 2024 due to its strength in the face of an adverse macroeconomic environment, as Finbold reported on October 30.
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