Skip to main content

As the world grapples with rising geopolitical tensions and various macroeconomic factors, commodities are experiencing significant shifts, with gold prices reaching an all-time high and Bitcoin (BTC) seeing a 160% growth this year. Meanwhile, other commodities are experiencing a decline, indicating a potential ‘great reset’ in the market.

Mike McGlone, a senior commodities expert at Bloomberg, shared insights on this trend in a recent post on X (formerly Twitter) on December 27. He observed that commodities are moving towards a significant reset, characterized by rising gold prices and the decline of other commodities, with the possibility of this trend accelerating in 2024.

McGlone outlined the conditions that could lead to a rebound of the declining commodities, including a resolution of China’s property crisis, Europe averting a recession, a resilient US stock market, and a weakening dollar. However, he noted that the impact of Russia’s invasion of Ukraine and the aggressive monetary tightening by central banks, particularly the US Federal Reserve, might continue to dominate the commodity market in 2024.

Previously, McGlone has cautioned about a ‘great reset’ and a severe impending recession in the US economy for 2024, driven by factors like stringent monetary policies, a robust labor market, and other economic indicators like consumer spending and income. He also predicted that the rally in spot gold prices is far from over, suggesting a potential surge to $3,000 per ounce in 2024 due to its resilience against a challenging macroeconomic backdrop.