Gold remarkably strong in 2017 despite US Fed tightening
NEW YORK (Scrap Register): The fundamental backdrop remains positive for gold, with the metal performing remarkably well so far in 2017 considering the US Federal Reserve has been tightening monetary policy and the stock market has fared well, said Adrian Day, chairman and chief executive officer of Adrian Day Asset Management.
“We have seen a series of higher highs and higher lows, a positive pattern, though the last few weeks, where a bounce has reversed, gives some pause; the next few weeks should provide a clearer technical picture,” he said in his quarterly portfolio update.
“Fundamentally, however, we remain positive: the dollar has topped, and though a near-term rally may be in the offing, it is likely to be weaker going forward; though rates around the world are likely to move higher, the pace is cautious; and inflation in both the U.S. and Europe is slowly moving up. Political uncertainty in the U.S., geopolitical tensions (in Korean and Syria), and a contentious period in Europe all lend support to gold,” he noted.