According to Mercenary Geologist Mickey Fulp, that’s no surprise. Speaking to the Investing News Network at this year’s Prospectors and Developers Association of Canada (PDAC) conference, he said that market uncertainty is “always good for the gold price.”
“Gold is a safe-haven insurance policy against financial calamity,” Fulp commented. “When the world is in turmoil, or economic distress, that’s always positive for gold.”
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The Fed isn’t the only factor that’s brought turmoil in the last several months. US President Donald Trump has caused plenty of uncertainty, and Fulp believes that he will continue to influence the gold price.
“Any time Trump stirs up the pot, if you will, gold will react one way or the other, usually to the upside,” he said. Trump has said a number of times that he doesn’t want a strong US dollar, and Fulp believes that the US dollar will be the key driver of the gold price moving forward.
That said, Fulp doesn’t think there will be an excessive amount of uncertainty moving forward. He sees the gold price ending 2017 higher than it was at the beginning of the year, but said the yellow metal is still a long way from reaching its highest point of nearly $2,000 back in 2011.
“I think we’re personally a long ways from $1,900 gold again,” he stated. “If that would happen, it would imply that the world’s in economic turmoil, and I don’t think it’s going that way.”
Listen to the interview above for more of Fulp’s thoughts on gold and the resource space.
I tend to agree with the above. Lots of potential issues could happen, yes. But does not mean they will. In my opinion it is just as likely Trump's plans will lead to stronger economy and even a more stable world. Although there will be plenty of turmoil in his first year. So I hope we will see gold move up to $1300 or so. But I do not expect much more than that.
Maybe our best bet would be if in the process of draining the swamp somehow the severe and long standing gold price manipulation would be overcome. I know that is a lot to ask but wouldn't that be a great thing to see?
It is easy to figure out what you believe. The difficulty lies in determining - is what you believe the truth.
