Huw McKay of Australia’s Westpac Banking Corp said on Monday that other metals such as aluminium, copper, nickel, lead and zinc will rise faster than gold this year.
It’s because these productive commodities will benefit from higher demand caused by the rebound in global growth, while gold won’t.
“The gold price is not going to do as well in relation to other commodities as it did in 2009. “That doesn’t mean the gold price is going down, it is just that the relativities to other commodities which are much more leveraged to the industrial cycle are going to start catching up. “So gold is going to lose some relative ground … there is some modest downside risk in the short term and then a very slow grind higher.”