Buoyant Gold Outlook Could Boost This Commodities ETF

Core Insights - Gold is expected to be a leading commodity in 2025, driven by a weakening dollar and other factors [1] - The Neuberger Berman Commodity Strategy ETF (NBCM) has a significant allocation to gold, enhancing its performance this year [2][3] - NBCM's active management allows for flexible adjustments in commodity exposure, particularly to gold and silver, which are anticipated to benefit from rising bullion prices [3] Market Dynamics - The increase in gold prices is supported by fundamental factors such as geopolitical tensions, economic policies, and concerns regarding the Federal Reserve [4] - Morgan Stanley has raised its 2026 gold price forecast to $4,400 per troy ounce, up from a previous estimate of $3,313, indicating potential appreciation [5] - Expectations of further interest rate cuts by the Federal Reserve could weaken the dollar and enhance gold's appeal as a safe-haven asset [6][7] Historical Context - Historically, gold prices have risen by an average of 6% in the 60 days following the initiation of a Federal Reserve rate-cutting cycle, as lower yields make gold more attractive [8]