Hedge funds slash bullish wagers on gold over Trump election win
The precious metal has fallen about 8% from a record high on Oct. 31, with losses accelerating after Trump’s election victory last week.
The price of gold has broken records because of increased buying by central banks and greater understanding of where inflation and interest rates are headed, Joe Cavatoni, senior market strategist at the World Gold Council, says in a new video.
“We’re seeing the move of gold up, expectations around rate cuts potentially developing and clarity around that coming online,” Cavatoni said in an interview in Toronto. “We also like the fact that what’s holding gold firm in terms of the price has been the use-cases that we often talk to: central bank buying, particularly among the emerging markets.”
Cavatoni spoke with The Northern Miner‘s Western Editor, Henry Lazenby, at the Prospectors and Developers Association of Canada’s annual convention in March. Watch the full conversation below.
