February 08, 2017 2 min read
Kitco News reports that despite a weaker U.S. dollar, many market experts, such as gold strategist Joe Foster, a portfolio manager with Van Eck, believe that the environment for gold is a positive one that will allow it to establish a longer-term bull market in 2017.
Foster attributes this positivity to the financial risk associated with worldwide political populism and the new Shari’ah gold-investment standard recently released by the Islamic finance industry, which could substantially increase the demand for gold bars, coins, exchange-traded products and stocks. Also playing to gold’s favor is the possibility of a decline in the stock market and U.S. dollar globally as a result of developing financial risks. Such risks include the potential changes President Trump may make to trade treaties, immigration policies and national debt coupled with the upheaval in Europe and the Middle East.
As Donald Trump begins his term as U.S. President, he continues to stir up unrest in the financial market, among others. Trump’s declarations about revising policies and approaches regarding international relations and trade, particularly those involving China, Germany, and Russia, have left market participants and experts unsure about the future state of the economy. As a result, the U.S. dollar has lost value, strengthening the gold market significantly.
International elections in Europe continue to cause anxiety, and concerns over the Turkish lira, Indian rupee, and Venezuelan bolivar are mounting, making gold an increasingly attractive asset for investors. George Gero, expert precious-metals analyst, predicts “continued volatility and later higher prices after option expiration.” Gold hit a two-month high in mid-January, and February Comex gold was recently up 1.56%, trading at $1,214.90 an ounce.