NIGAM ARORA ON GOLD: IF TRUMP’S REMARKS CAUSE CURRENCY TURMOIL, GOLD WILL GO UP $GLD $SLV $NUGT $ABX $CDE $DUST $GDX $GDXJ $HMY $SLW
Here is the interview of Nigam Arora on gold by Business Standard, India’s second largest financial publication. India is often the largest or the second largest consumer of gold. Enjoy!
Nigam Arora is a financial market expert forecasting market trends using algorithms. His famous ‘Arora report’ is widely followed. In an interview to Rajesh Bhayani he explains why in medium term gold looks weak. Edited excerpts:
Gold prices have risen from its November lows. Why and what is your outlook in near and medium term?
There have been three reasons behind gold’s up move. First there are whiffs of inflation in the wind. At ‘The Arora Report’ we monitor economic data from 23 countries. The data is showing early signs of potentially higher inflation down the road. Gold benefits from inflation. This is a long-term support for gold.
Second, gold was oversold after Trump’s election. The recent bounce has been partly the result of a natural bounce from the oversold condition.
Third, there is fear that Trump would start a trade war. Gold is being bought as a hedge for stock portfolios.
Has gold regained it safe haven status and rally seen in recent weeks is followed up with physical demand or it is just a speculative rally?
No, gold has not regained big time safe haven status. The physical demand continues to be weak. The odds are that the present rally is a speculative rally. However, if Donald Trump says anything that causes turmoil in currencies, gold can quickly shoot up $200….
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