Gold Up 8{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} In First Half 2017; Builds On 8.5{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} Gain In 2016

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by Mark O’Byrne, Gold Core:
– Gold up 8{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} in first half 2017; builds on 8.5{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} gain in 2016
– U.S. dollar down 6.5{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} – worst quarter in seven years
– Gold higher in all currencies except Draghi’s euro
– Gold outperforms bonds; similar gains as stock indices
– S&P 500 and Dax outperform gold marginally
– World stocks (MSCI World) up 10{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}; gold outperforms Eurostoxx (+6{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}) & FTSE (+2.3{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528})
– Silver up 3.7{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} in first half ; builds on 15{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} gain in 2016
– Stocks, bonds, property buoyed by stimulus
– Resilience in gold as world struggles to hold confidence
– “If one hasn’t diversified this would be a good time to do that” – Shiller

From President Trump taking office, Fed policy tightening to European and UK elections, Brexit rumblings and growing Middle Eastern risks, the first half of 2017 gave witness to a few trends which look set to impact markets in the coming months.

Gold and silver are amongst the best performing assets in 2017, with gains of 8{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} and 4{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} respectively and stayed resilient despite poor sentiment.

Demand drivers such as geopolitical uncertainty, a weak dollar and low interest rates continue to provide support for the precious metals as does renewed robust demand in the Middle East,  India and China.

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