2017-03-03 — sprottmoney.com
Gold prices have surged since January. However, one expert says that trend could continue. "Shrinking exploration budgets, a dearth of new high-quality deposits and the "fear trade" will provide continuing upside pressure as the year unfolds," says Brent Cook, editor of Exploration Insights. "Some gold stocks may be overbought right now, but long-term fundamentals are better than ever."''
Cook [also] notes that strong gold fundamentals are coinciding with favorable developments on the global macro front. "The rise of the Trump Administration is making the "fear trade" increasingly important," says Cook. "People think that he is unstable, that his "trade war" policies are bad for the economy and that he is dangerous, in part, because when the going gets tough, he'll be at the mercy of his advisors."
These developments come at a time when the greenback itself appears to be overbought, Cook said. "Gold is the reciprocal of the US dollar and the world's confidence in the United States is going south. That's bad for the currency but good for the yellow metal."
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