Why gold still has more upside: Truist strategist

Gold (GC=F) has reached new all-time highs in the past month, fueled by geopolitical uncertainty, central bank buying, and US dollar weakness.

Truist Co-chief Investment Officer & Chief Market Strategist Keith Lerner joins Market Domination Overtime to give insight into gold and why investors may want to add it to their portfolios.

"From a portfolio diversification standpoint... we added earlier this year a modest position. And there's a couple of things. One is, from a technical perspective, it just made an all-time high. The underlying technical trends are very positive. You have central bank buying around the globe, especially with China. You still have a decent amount of geopolitical uncertainty. And it's also a hedge against dollar weakness as well," says Lerner

For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.

This post was written by Nicholas Jacobino

Video Transcript

Kit.

I wanna switch gears a bit and talk about a gold as well with you.

It looks like it erased earlier losses after that jolts data.

Uh the trends look positive from here, Keith.

Yeah, we, you know, from a portfolio diversification standpoint, we have we added earlier this year, a modest position.

Um and there's a couple of things, one is from a technical perspective, it just made an all time high.

The underlying technical trends are very positive.

You have central bank buying around the globe, especially with China.

You still have, you know, a decent amount of geopolitical uncertainty and it's also a hedge against dollar weakness as well.

So you put all those things together along with the fed reducing rates.

We think there's a place in a portfolio for at least a modest position in gold.

And we think there's still upside to go for the yellow metal, Keith.

Is there anywhere else whether it's in stocks or other assets right now that you think is being overlooked that investors absolutely have to be looking at.

That's a tough question, Julie.

Um you know, we ultimately, you know, our favorite asset is still stocks we just think we have to kind of get through this kind of sloppier transition period.

So I, I still think that's the spot and it's kind of boring because we still think us large caps and eventually we think money will rotate into tech.

We don't know that it's oversold enough here yet.

Uh, but besides that, we, we do actually also, you know, looking at bonds kind of plain vanilla bonds, they're acting like bonds again, meaning when we had the correction in August, they were actually up the most uh that we've seen in any correction since the pandemic.

So I think just, you know, it sounds boring and simple.

But going back to basic diversification works and sticking with large caps and higher quality at this point in the cycle makes sense.

And then, you know, using some of these Pullbacks that we, that we think we'll have, especially as we have anxiety into the election has actually opportunities uh to, to pick up things that are, are, are cheap or on sale.

All right, sometimes boring works.

Keith.

That's just, that's just how it is.

Thanks a lot.

Good to see you as always, really appreciate it.