Defensive investors might get less out of gold than they hope, said Hannah Anderson, JPMorgan Asset Management Global Market Strategist, in an interview with Bloomberg.

“Some investors are starting to wonder if gold will be the safety for their portfolio,” said Anderson.

Gold has been surging. The yelllow metal hit a two-month high in midday U.S. trading today.

Gold has been getting the lift because investors are flocking to defensive asset classes, said Anderson. Its been over a decade since the last recession, which is an unusual length of time. Defensive assets have become expensive; thus the interest in gold, which is looking relative cheaper and is now rallying at the same time as equities are going higher.

But Anderson said investors might be disappointed with gold in 2020. She said the performance of gold in downturns is a “mixed-bag.”

“There are very few scenarios that gold does well,” said Anderson looking forward to 2020. “There is no sure thing when it comes to gold.”

Anderson also believe that inflation will not be as strong as might be expected in 2020, a scenario where gold does “really well”.

Anderson notes that gold has also been getting a strong lift from demand outside of the developed market.

Author: Michael McCrae

Source: Kitco: Gold has probably given us its best shot: analyst

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