Gold tends to bottom out and rally sharply during periods of successive interest rate cuts. Exchange-traded fund demand, absent for two years due to rising real yields, higher inflation, and increased carry costs, could witness a resurgence, providing an additional boost to gold prices
Since investing in commodities can be a different ball game, investors need to take extra precautions. Before jumping in, investors should note that commodities have already rallied in 2020 and therefore, should rein in their return expectations in coming years.