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Should Investors Give Into This Gold Hype?

Scorpio

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vid at link by Kitco newshttp://www.kitco.com/news/video/sho...s-Give-Into-This-Gold-Hype---RBCs-George-Gero
http://www.kitco.com/news/video/sho...s-Give-Into-This-Gold-Hype---RBCs-George-Gero
Should Investors Give Into This Gold Hype? - RBC’s George Gero

Feb 03, 2016

Guest(s): George Gero

Gold hit a fresh 3-month high and breached a key technical barrier Wednesday, but should investors be giving in to the hype? 'I don’t think it’s a question of hype,’ one veteran trader tells Kitco News. RBC Capital Markets’ George Gero says gold investors had a great buying opportunity in gold late last year when prices took a dip, especially since prices are now up around 7% year-to-date. 'The question is: is it really different this time or is this sort of a bounce that may not last?’ The longtime precious metals strategist looks for gold prices to move higher this year as the Federal Reserve only raises interest rates twice, instead of the previously schedule four hikes. 'I think by the end of the year, I’m hoping to see, or at least, I’m prepared to see $1,200-1,300 [gold],’ he says. ‘But, I don’t think we’re going to see the funds jumping in until we start to stabilize at over $1,200,’ he adds. April Comex gold futures managed to breach above the key 200-day moving average on Wednesday, a key technical barrier last taken out in October, and settled the day 1% higher at $1,141.30 an ounce. Despite the sudden interest in gold, as seen by inflows into the market, Gero says the yellow metal remains ‘under-invested’ by funds. Kitco News, February 3, 2016.

http://www.kitco.com/news/video/sho...s-Give-Into-This-Gold-Hype---RBCs-George-Gero
 

solarion

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I don't see even two .25% rate hikes happening this year, let alone four. The fed did their piddly .25% at the end of last year just to maintain some sense of credibility after threatening to raise rates for a couple years. There'll be no "normalization" of rates and the guys in the bond pits know it. All this blather about higher rates that has been casting a dark cloud over the "barbaric relic" will continue to dissipate.