Why gold bulls should have had more faith
Not even Federal Reserve chair Janet Yellen’s hawkish outlook on interest rates has been enough to stop the gold party
New York — Gold bulls are acting as if they cannot believe a good thing when they see it. They should have had more faith. Hedge funds reduced their wagers on a bullion rally for the first time in three weeks, just before prices neared a two-month high and capped a third consecutive week of gains. Not even Federal Reserve chair Janet Yellen’s outlook for higher US interest rates has been enough to disrupt the gold party. Investors snapped up the metal as a store of value amid concern that President Donald Trump’s fiscal policies will bloat government debt. There is also anxiety over anti-establishment candidates in this year’s elections in the Netherlands, France and Germany, who favour exiting the EU. "Any indication that there could be more exits from the EU could make money come into gold — any sign of potential European instability," said Walter "Bucky" Hellwig, who helps manage $17bn as senior vice-president at BB&T Wealth Management in Birmingham, Alabama. "There are also conc...
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