Gold’s medium-term outlook remains to be constructive, and long-term buyers needs to be utilizing decrease costs to re-weight their gold holdings, mentioned Peter Hug, international buying and selling director of Kitco Metals.
“There’s a bridge that must be gapped right here till this vaccine offers everyone the arrogance to return and have this financial system at full bore. That’s, to me going to require extra stimulus,” Hug mentioned. “The politicians won’t do it, I believe that’s going to essentially damage the inventory market, but when they do do it, I believe that’s constructive for gold.”
In six months, it’s greater than prone to get extra stimulus which might drive gold to new highs. Financial tightening wouldn’t occur earlier than 2022, Hug added.
Hug mentioned that buyers needs to be allocating solely a portion of their portfolio into metals and actively re-balance when wanted.
“A balanced portfolio is the neatest approach to go. A part of that balanced portfolio ought to maintain exhausting property, whether or not that’s gold, whether or not that’s actual property, whether or not that’s oil, you want a part of your portfolio in treasured metals,” he mentioned.
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