Gold’s found a new pocket of opportunity

CNBC/Louisa Bojesen/04-18-17

Kieron Hodgson, a commodity and mining analyst from Panmure Gordon & Co, says that despite having a bullish outlook for the U.S. dollar, all other factors are in place to push the spot gold price higher.

He lists economic uncertainty (Brexit, French elections, Chinese debt levels), concerns over high equity valuations (the U.K. now has all 10 industry groups returning positive 5-year rolling performances for the first time), trading positions (short positions were peaked around the recent U.S. rate decision and then collapsed when the conversation switched to deleveraging the Federal Reserve’s balance sheet), central banks (they are now marginal buyers of gold for the first time since 2012) and indeed the pickup in inflation as being the main issues that should continue to support the price of gold.

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