The opening of gold for 2017 has almost been similar to what it had performed in Jan 2016. Gold started with a strong performance in Jan 2016. Similarly, gold is now outperforming most assets in its class.
From the final week of 2016 through the first three of 2017, gold has strung together four consecutive winning weeks, Therein, we can instantly see gold is better positioned now than it was three weeks into last year.
Moreover, gold was to pull back a bit, but as of now there is “room” to do so in the construct of moving higher, for as anticipated, the parabolic trend by the weekly bars has just flipped from Short to Long with price settling out the week as on Friday, 20th jan’17 at 1210
The performance so far has shocked the market as Gold had been underperforming since Trump won the election in November.
With this positive uptrend that has been witnessed by the gold market, the traders and investors are questioning its consistency to rise. Whether or not it shall continue to outperform and generate another positive year for Gold.
Both the short-term outlook and the long-term outlook for gold are BULLISH! Trumps’ victory win is a positive for gold bulls. Policy uncertainty and slowing growth, following a Trump win, will stroke the yellow metal’s’ price in 2017.
Gold investors have oscillated between a fear of a Donald Trump presidency as a wildcard that will upend policy on everything from trade to alliances, with an alternate vision that sees him juicing U.S. growth, equities, and the greenback.
Gold prices have been under pressure since the Trump victory, but the long-term scenario for gold is that it is parabolic. There has been a mixed reaction in the market and is expected to continue to be perplexed over the following ongoing issues.
- The global economy is still tightening.
- The demand for gold jewelry has been declining within the large gold-consuming nations
- Global Center Bankers continue with monetary easing, leading to currency debasement.
- Interest rates continue to slide into negative territory in Europe and Asia.
- Supply constraints are creating a rally in gold prices.
This is the last great buying opportunity for gold before it makes its’ next historic run in 2017 and beyond.
The market is now worrying about what would come out from the new administration. In such an uncertain and unpredictable environment, people rush towards a safe haven asset to protect themselves from uncertainty- and what better option than gold do they have. Hence gold demand is expected to rise on one hand, on the other hand, supply constraints will push up gold prices.
Gold’s investment appeal will encounter a period of time before it generates positive yields. Gold, as an investment, will once again be back in vogue. As prices rally, investment demand will only rise further, taking everyone by surprise.
Given these markets conditions, precious metals are likely to see gains in 2017 despite a cautious mood in the markets following the declines at the tail end of 2016. There were many factors that rallied gold prices in 2016 and the same are expected to push gold prices further in 2017.