Some gold market observers believe the yellow can firm up and trend higher next year as the dollar retreats. At least one gold bull believes bullion could return to $1,400 for the first time since 2013. The current environment, characterized by economic growth and heightened inflation expectations, provides an ideal backdrop for investors to consider the benefits of real assets.
“There is a risk in the short term for a dip below $1,200 if the current market dynamics persist,” Garvey said on the sidelines of a conference in Kochi, reports Bloomberg. “But looking at the next six months, we are actually around the bottom for this cycle already, so it is more suited in the long term for investors as a decent level for purchasing for their portfolios,” he said.
Investors have pulled $1.62 billion from GLD year-to-date.
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Tom Lydon’s clients own shares of GLD.