Sterling gold has risen another 3.5% in the last 3 trading days as the British pound continues to be “pounded” on international markets. Sterling is now the worst major performing currency in 2016 and gold the best.
Gold prices "are going up" whether Trump or Clinton are elected according to most analysts in the gold market including former Libertarian and Republican presidential candidate Ron Paul.
The gold trading Commitment of Traders (COT) report, released Friday, shows the peculiarly timed gold sell off and much needed wash out of speculative longs out of the gold futures market last week sets gold up for lower prices, prior to moving higher again.
Sterling gold surged 5% in less than a minute overnight in Asia with prices rising from £994/oz to £1,043.40/oz as sterling had a massive “flash crash.”
Gold forecasting is a mugs game at the best of times but given the uncertain geo-political situation, the fragile banking system and the very strong fundamentals for gold, it is hard to argue with Barnabas Gan of OCBC or BMI. Gold should be meaningfully higher in the coming months and into 2017 as investors diversify into gold. Or rather we are likely to see dollars, euros, pounds and other fiat currencies continue to be devalued versus gold.
"...we assume that some kind of fix will soon be in – probably one that will further vindicate exposure to gold, both as money substitute and currency substitute."
Sterling gold rose 1.3% today as sterling slumped again after the UK set a March deadline to start their 'Brexit divorce' proceedings from the European Union and on deepening nervousness regarding a 'Hard Brexit'.
The euro “might start to unravel” if Deutsche Bank collapses according to respected financial journalist, Matthew Lynn. “It all has a very 2008 feel to it …” he warns and outlines his and our growing concerns about Deutsche Bank.
"Gold will likely soar to a record within five years as asset bubbles burst in everything from bonds to credit and equities, forcing investors to find a haven ..."
