Gold Price Fundamentals Remain Positive

Although gold bottomed out at $1,200 per troy ounce this summer, gold prices have since risen above $1,300 per troy ounce, according to Adrian Day, president of Adrian Day Asset Management. Nevertheless, the gold price remains well below the high, despite the fact that the fundamentals for a high gold price are still positive. 

In particular, the monetary stimulus policies that are being pursued worldwide. Despite the fact that the Fed is cautiously talking about reducing these stimulus, the policy remains unchanged and Adrian Day does not see this picture changing in the near future.

According to Adrian Day, the market reacted very overwrought to the discussion to reduce the purchase of government bonds. Fed members, including Ben Bernanke, have been cautious ever since, maintaining monetary easing policies to repair market turmoil. 

Source: Kitco