ECONOMIST FORESEES GOLD RETURNING AS OFFICIAL FINANCIAL ASSET
Analysts are trying to identify Gold’s next move and what might trigger it. “Gold is historically positively correlated to the euro,” Precious Metals strategists at HSBC said. “The bullion market may focus on the upcoming European Central Bank meeting and its corresponding euro reaction, we believe,” the strategists said. The euro is on the rise today with a better than expected purchasing managers index for January.
Credit rating agency Fitch confirmed today they made the decision to cut the Netherlands’ outlook to negative. The assessment for the Dutch economy came from concerns over the nation’s banks and housing market. “Fitch’s affirmation of the Netherlands’ ‘AAA’ sovereign rating is underpinned by the country’s flexible, diversified, high-value-added and competitive economy as well as its current account surpluses and positive net international investment position,” Fitch added.
Dundee Wealth economist Martin Murenbeeld is very bullish for Gold. Murenbeeld recognizes how central banks have been interested in holding the yellow metal for some time now and anticipates they will only acquire more in the future. “It is our view that central bank Gold purchases will continue for many years to come. Indeed, it is our view that Gold is reclaiming its historic role as an official financial asset. Our baseline scenario has central banks buying Gold in size (500 tonnes per annum) for at least the next five years.” Murenbeeld noted in a recent article.
At 1 p.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,673.80, Down $3.10.
- Silver, $31.91, Up $0.16.
- Platinum, $1,707.10, Up $9.00.
- Palladium, $766.50, Up $7.70.
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