As Washington and Beijing continue to up the ante in their protracted trade fight, the potential of a recession in the U.S. is now 'the biggest concern,' according to Standard Chartered Private Bank's Clive McDonnell.
That prompted a swift response from Trump, who announced he will hike tariff rates onHe also tweeted that American companies "are hereby ordered to immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA."
"The compounding effect of all these ... continuous ratcheting in terms of tariffs is definitely escalating the risk that the U.S. just glides into recession," McDonnell told CNBC's "Street Signs" on Monday. "I think that's a real concern for markets now.
"Gold was an asset class that for many, many years ... we shunned," he said. "But last month, we upped gold to a preferred status to reflect that ... increased anxiety, increased uncertainty.", last traded at $1,539.21. "I would not be surprised if — and I emphasize if — the U.S. were to slide into recession that we would see ... upwards of $2000 on the gold price," McDonnell said.
"In an environment where ... all assets aside from U.S. Treasurys ... would be weakening ... gold would be ... an asset that could re-rate further," he said.
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