Finding value in commodities

Conversely, a rise in yield, particularly inflation-protected yields, makes gold look worse by comparison. This makes the investment case for gold a tricky judgment call for investors. On one hand, holding some gold could be a sensible way to provide extra protection should current buoyant sentiment conditions worsen. On the other, if central bank accommodation is about to be withdrawn, rising real yields could be a damaging feature of the landscape for gold investors in coming years.

Nandini Ramakrishnan ia s global market strategist at JP Morgan Asset Management

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