UNITED STATES January 13 2017 9:28 AM

NEW YORK (Scrap Register): The sovereign credit rating outlook from ratings agency Standard & Poor’s is friendly for gold, said HSBC. 

Analysts cited news that S&P downgraded almost three times as many countries’ sovereign credit ratings as it upgraded in 2016. The S&P also stated that it expects this trend to accelerate this year.

This is gold-bullish. Gold is a barometer of confidence in government and the state of government finances and the financial markets in general. 

Of the 130 countries with a credit rating from S&P, just seven have a positive outlook, with 30 given a negative outlook. The number of negative credit ratings has increased since the 2008 financial crisis, they added.