Gold traders most bullish since 2015 on New Year concerns
By Eddie van der Walt and Ranjeetha Pakiam
There’s one thing almost all gold traders and analysts agree on, now is a great time to own bullion.
Those surveyed by Bloomberg were the most positive they’ve been on the metal’s price outlook since the end of 2015, with 14 saying they’re bullish on the metal, two bearish, and one neutral. Worries over political developments in Europe, and in the US following Donald Trump’s election, as well as expectations of stronger demand ahead of the Lunar New Year were cited as factors.
“The euro zone has plenty of crisis triggers over coming months; Indian and Chinese buying remain strong and Trump’s policy threatens inflation,” said Adrian Day, president of Adrian Day Asset Management in Annapolis, Maryland, which oversees $190 million. “All this is positive for gold.”
Bullion for immediate delivery is up 2.7 per cent this week, and is heading for the biggest such gain since the five days ended April 29. Prices were at $1,178.55 an ounce on Friday after climbing to $1,185.14 a day earlier, the highest in a month, according to Bloomberg generic pricing. The metal rose 8.1 per cent in 2016, its best performance in five years. Demand for gold as gifts in China normally rises before the Lunar New Year, which this year starts at the end of January.
There’s one thing almost all gold traders and analysts agree on, now is a great time to own bullion.
Those surveyed by Bloomberg were the most positive they’ve been on the metal’s price outlook since the end of 2015, with 14 saying they’re bullish on the metal, two bearish, and one neutral. Worries over political developments in Europe, and in the US following Donald Trump’s election, as well as expectations of stronger demand ahead of the Lunar New Year were cited as factors.
“The euro zone has plenty of crisis triggers over coming months; Indian and Chinese buying remain strong and Trump’s policy threatens inflation,” said Adrian Day, president of Adrian Day Asset Management in Annapolis, Maryland, which oversees $190 million. “All this is positive for gold.”
Bullion for immediate delivery is up 2.7 per cent this week, and is heading for the biggest such gain since the five days ended April 29. Prices were at $1,178.55 an ounce on Friday after climbing to $1,185.14 a day earlier, the highest in a month, according to Bloomberg generic pricing. The metal rose 8.1 per cent in 2016, its best performance in five years. Demand for gold as gifts in China normally rises before the Lunar New Year, which this year starts at the end of January.
