Gold has broken out of the range it was in since late 2013. While it retreated after the Group of 20 summit, it is too early to conclude that trade and other disruptions are behind us.
Instead, geopolitical uncertainties and market disruptions are the new norm. At the same time, economic growth looks tepid. Given this backdrop, central banks have embarked on another easing cycle. Gold is an effective hedge and a good component of robust portfolio construction in this environment.