The last few weeks have been tough on gold. If you have a short-term mentality, you might even think the gold market has gone bearish. But as World Gold Council chief market strategist John Reade pointed out in a piece he wrote for the December issue of WGC Gold Investor, 2017 has been good for gold. And he sees some key reasons to believe 2018 will be as well.
The gold price has moved ahead this year, despite rising US interest rates and a persistent bull market in equities. Looking ahead, there are several reasons to believe that gold could maintain upward trajectory. Investor attention may have been focused on US equity markets, technology stocks and cryptocurrencies this year, but gold has still had a decent 2017, delivering double-digit growth in the first 11 months alone. The strong performance is particularly noteworthy in a year when the US has been hiking rates and equities have remained in favor.’
Reade lists several factors he thinks will be bullish for gold in 2018.
First, he takes a similar view others seem to be coming around to in the mainstream – that the US stock market can’t continue going up forever.
This post was published at Schiffgold on DECEMBER 14, 2017.