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Gold ‘not out for the count just yet’
Feb 3,2017 09:50CST
Gold weakened last week but is not out for the count just yet, said TD Securities, suggesting investors are still buying the yellow metal as a hedge and gold could climb to $1,225 before long. 

UNITED STATES February 01 2017 8:07 PM

NEW YORK (Scrap Register): Gold weakened last week but is not out for the count just yet, said TD Securities, suggesting investors are still buying the yellow metal as a hedge and gold could climb to $1,225 before long. 

Potential problems in passing the new U.S. administration's tax cuts and spending agenda through Congress, the risk of a trade war with Mexico and China, and uncertainties surrounding Federal Reserve policy have kept investors invested in the metal, said TDS.

“Clearly, money managers want to be diversified in these turbulent times. With the USD (U.S. dollar) likely pausing for a bit as markets question Mr. Trump's ability to deliver strong growth, the expectations of a less hawkish Fed along with a considerable level of equity market and EU risk developing, it is reasonable to assume many investors will look toward gold as a hedge,” TDS added.

This suggests the lengthening of speculative positions and higher gold prices, with $1,225 well within reach in the not-too-distant future.

Gold prices

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