Comments by ING's commodities strategist, Oliver Nugent, earlier today
- Fundamental case for holding gold remains intact
- We look to physical demand, geopolitics, and inflation to provide support
- Expects longer-term holders to "build a floor" for gold
- Even if active money managers are selling in the near-term
- Flattening yield curve, twin deficits, mid-term elections, trade spats could highlight US policy/political uncertainties; could spell reversal for the dollar
- That will reinforce our bullish gold view as we expect inflation to substantially pick up this year
Currently gold is trading below the key support level highlighted here earlier in the day. And as I have mentioned several times before as well, there is merit to the argument for a weaker dollar over the medium to long-term horizon but the market simply isn't focusing on that at the moment - and as retail traders it's best for us not to fight it.