Why gold doesn't like normal
from Kitco NEWS Roundtable Hosted by Kitco
With markets looking past the disputed election and a stalled stimulus, editor Neils Christensen said gold is trending down in the short term. On Friday Christensen was joined by correspondent Paul Harris and mining audiences manager Michael McCrae to record Kitco Roundtable podcast. Special guest was Patricia Dillon, former president of the PDAC. Gold has been on the backfoot. This week saw massive gold-backed ETF outflows, which weighed on the precious metal. But the market held its ground at the critical $1,850 an ounce level and managed to end the week on a slightly more positive note, with December futures last trading $1,872.30, up 0.58% on the day. Despite the outlook for another government stimulus in the U.S. starting to dim, Christensen said investors believe the good vaccine news may result in the economy getting back to normal sooner, thus the pressure on gold. But Christensen believes the fundamentals still support precious metals going higher. Governments have added debt in the trillions, and there are no signs of reversing, which is tying the hands of the federal reserve and other central banks. "It's the perfect storm for gold. Whether there's a vaccine or not, gold is going up...and gold should continue to go up," said Christensen. The panel also talked about SQM's expansion plans due to lithium output rising, rising diamond sales at De Beers and plans to host PDAC virtually. Follow the panelists: Neils Christensen Twitter Paul Harris Twitter Michael McCrae Twitter
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What this episode covers
With markets looking past the disputed election and a stalled stimulus, editor Neils Christensen said gold is trending down in the short term. On Friday Christensen was joined by correspondent Paul Harris and mining audiences manager Michael McCrae to record Kitco Roundtable podcast. Special guest was Patricia Dillon, former president of the PDAC.
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