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Mike McGlone: Gold Price is ‘Firming.’ Commodity Strategist Insists that BTC, Ethereum Will ‘Outperform Major Assets.

Over the last two days, Bloomberg Intelligence commodity analyst Mike McGlone published the firm’s commodity and crypto outlook reports, and McGlone’s latest analysis details that the price of gold could resume its rally after a foundation similar to 1999 is constructed. Moreover, as far as bitcoin and ethereum are concerned, the analyst argues that the two leading crypto assets will “outperform most major assets” when the “economic tide turns.”

Mike McGlone,

Commodity Strategist: “We See Risks Tilting towards an Elongated Deflationary Period Which Can Favor Gold ‘

.”

The senior commodity strategist at Bloomberg Intelligence (BI), Mike McGlone, believes gold, bitcoin (BTC), and ethereum (ETH) are currently forming price bottoms, and when the economy shifts back to better standings, all three will likely rally. While gold is down from the precious metal’s all-time price high ($2,070), for now, it’s held above the 1,700 nominal U.S. dollars per troy ounce range. McGlone says that gold is currently forming a foundation akin to the market performance it saw in 1999.

At the time, the price of gold was 250 nominal U.S. dollars per troy ounce and it never went below $250 an ounce again. The senior commodity strategist at BI believes that this trend may continue. “The disparity in dollar-denominated gold vs. euro-based is nearing levels that formed a lasting foundation for the metals price in 1999,” McGlone’s report explains. “Down about 10% in 2022 to Sept. 28, dollar gold compares with respective gains of 5% and 10% for the euro and yen.”

The commodity strategist added

Aggressive Fed tightening to address inflation and elevated asset prices — which is buoying the greenback, as the rest of the world tries to catch up — echoes trends about two decades ago. The underpinnings of gold are strengthening in order to resume the rally that began with this base.

McGlone further remarked that rising gold on a non-dollar basis is “showing the kind of stress that may break the Federal Reserve’s rate-hike trajectory.” If the Fed happens to halt monetary tightening policy, McGlone suspects it could be the catalyst for the rally to resume. The BI report states that “the relative discount in dollar vs. Euro gold spread is indicative of currency distress and suggests a possible catalyst for a Gold Bottom — an easing Fed rate-hike expectations.”

Bloomberg Intelligence Report: Bitcoin, Ethereum and BGCI Could Outperform Major Assets

In addition to the October metals outlook, McGlone and fellow market strategist Jamie Douglas Coutts published BI’s crypto outlook for October. McGlone’s crypto analysis states that bitcoin and ethereum will outperform most of the assets today when the economy changes. The latest report by the strategist highlights that “when the ebbing economic tide changes, we see the propensity resuming bitcoin, ethereum and the Bloomberg Galaxy Crypto Index, (BGCI to outperform most of the major assets.”

The crypto report also states that rate increases could be a threat to the top assets and create a headwind. The October BI report states that the benchmark crypto could shift to becoming a risk-off asset like gold or U.S. Treasurys. This may be seen in 2H. Furthermore, McGlone also discussed how October is typically a bullish month for BTC in contrast to September’s dismal price history.

McGlone’s analysis of crypto states:

Since 2014, October has been the best month for bitcoin, averaging gains of about 20%, and in 3Q the BGCI advanced about 16% vs. 5% declines for the Nasdaq 100 and S&P 500. Ethereum’s transition to proof-of-stake may be helping it build a base above $1,000 and Bitcoin about $20,000.

What do you think about McGlone’s analysis concerning gold, bitcoin and ethereum? Please comment below to let us know your thoughts on this topic.

Jamie Redman

Jamie Redman, the News Lead at Bitcoin.com News, is a Florida-based financial journalist. Redman has been an active member of the cryptocurrency community since 2011. Redman is passionate about Bitcoin, open-source codes, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Disclaimer: This article is for informational purposes only. This article is not intended to be a solicitation or offer to buy or sell any products or services. Bitcoin.com does not provide investment, tax, legal, or accounting advice. The author and the company are not responsible for any loss or damage resulting from or in connection to the content, goods, or services discussed in this article.

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