No shortage of supportive factors for gold

Short-term weakness for gold is not impossible especially if the USD continues to rally. Whilst the dollar index is again pushing the 100 mark, further upside can’t be ruled out, especially with the uncertainty regarding the upcoming December 4 Italian referendum, which some analysts fear could effectively spell the end of the Euro. Either way, with this referendum just around the corner, plus elections to come in Austria, France, the Netherlands and Germany in the next year, and the ongoing drama of Brexit, 2017 is shaping up as a year of major uncertainty regarding Europe. Some gold bulls will also be troubled by the revelation that high profile investors like Stanley Druckenmiller have sold out of their gold positions, citing his optimism on the economy and on stock markets, though we still think the metal has no shortage of supportive factors. For those who want to stay long history, and short hubris, we’d continue to use this corrective period as a buying opportunity in precious metals. (VIEW LINK)