Gold price firms in holiday-thinned trade, spotlight on Fed and Trump policies
The yellow metal has gained 27% so far this year.
Copper demand is decelerating said Michael Widmer, metals strategist for Banc of America Securities-Merrill Lynch, but the supply is still constrained. Widmer was interviewed by Bloomberg’s Tom Keene on Tuesday.
“If you take into account the stabilization in demand that we do see right now, maybe a little bit of a slowdown, you just don’t see the mine supply coming through there to push the market into really big surpluses,” says Widmer.
Widmer says you find the same problems with platinum due to supply problems in South Africa.
Widmer is bullish on bullion.
“I think for gold here it is a relatively good environment.”
Widmer says that his company’s forecasts for gold hitting $1,500 is still in place in part because of the economic environment in the U.S.
Central banks have also played a part is supporting the gold price. Although there have been some sell offs, Widmer says that the central bank community has been, overall, net buyers of gold, particularly emerging markets.
