Gold Up 8% In First Half 2017; Builds On 8.5% Gain In 2016

by Mark O'Byrne, Gold Core: – Gold up 8% in first half 2017; builds on 8.5% gain in 2016 – U.S. dollar down 6.5% – 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%; gold outperforms Eurostoxx (+6%) & FTSE (+2.3%) – Silver up 3.7% in first half ; builds on 15% 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% and 4% 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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