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gold and silver hitting new records today both pacing for the best year since nineteen seventy nine copper is also at new highs it's having its best year since two thousand nine will the commodity run up continue in twenty twenty six well joining us now TD securities global head
? (Anchor) 00:13.590
of commodity strategy bart malik bart it's great to have you on and i want to start right there because it's been such a torrid year whether it's precious metals or industrial metals does it continue well
Bart Melek (Global Head of Commodity Strategy) 00:26.510
great to be here certainly we think that gold in the first half of twenty twenty six will likely continue we're looking at a quarterly high of forty four hundred dollars which implies a trading high about you know forty six forty seven plus and we we think that this trade based
Bart Melek (Global Head of Commodity Strategy) 00:48.590
on lower fed funds as we move into the twenty twenty six continues to happen of the yield curve and inflation i think will remain stubbornly above the two percent target at the same time central banks around the world are betting on this whole trade associated with you know
Bart Melek (Global Head of Commodity Strategy) 01:10.990
reduced value of the US dollar we're seeing investors trying to remix their portfolios from this traditional sixty forty to now include as much as twenty five percent exposure in commodities which includes gold silver oil copper and and some of the other major commodities are
Bart Melek (Global Head of Commodity Strategy) 01:33.760
you
? (Anchor) 01:33.880
a believer in the debasement trade i mean i realize a lot of folks have made a lot of money on it this year and it certainly makes sense to hedge your bets here when i hear numbers like twenty five percent in commodities in a in a portfolio and i look at where the dollar is and
? (Anchor) 01:47.120
yes it came off this year but it's starting to come back i i just wonder what what kind of legs this has well
Bart Melek (Global Head of Commodity Strategy) 01:53.670
i think for now it's very very much on top of mind but realistically the economy is slowing somewhat employment numbers are eroding the implication here is we're probably going to see less inflationary pressure and it's very likely that some of the most aggressive tariff actions
Bart Melek (Global Head of Commodity Strategy) 02:14.190
taken against US trading partners are going to be mitigated to to some degree you know particularly on some of the precious metals other inputs like aluminum and copper we think of these levels it's unsustainable so inflation may very well start trending lower as well because of
Bart Melek (Global Head of Commodity Strategy) 02:31.910
those factors and you know the fed is unlikely to be overly aggressive on the easing you know certainly this is what mister powell is signaling to the market but realistically we will have somebody new in may twenty twenty six and we will probably continue to have a white house
Bart Melek (Global Head of Commodity Strategy) 02:51.200
that is you know maybe not interfering legally but will probably try to pressure the the fed to be as accommodative as it can so the economy is likely going to be try to be geared up hot we're going to see the fed tilting towards a maximum employment part of their mandate so i
Bart Melek (Global Head of Commodity Strategy) 03:12.990
think partially that trade remains but you know to have twenty five percent exposure in commodities out of the hundreds of trillions of dollars that are now sitting in equities and fixed income that's probably not possible and that would blow up the entire commodity market