Gold Is Attracting Fund Interest At These Levels
(Kitco News)- There appears to be renewed interest in gold eventhough no fundamental changes have occurred. U.S. rates are still nudginghigher, with the 10-year bond closing in on 3%. The dollar seems to be at leaststable, albeit the recent strength has mitigated somewhat. Geopoliticaltensions have settled down. But, inflows into ETFshave begun to accelerate. This is the vehicle used primarily by fund managers, and either they believe gold is cheap at $1,225or they are becoming increasingly concerned of a “tipping” event on the near-term horizon. Without making apolitical statement, one has to wonder about the chaos that swirls around theadministration on a daily basis. Will this impact policy on trade, North Korea,Iran or the mid-terms. Does it make sense to add gold to your portfolio whenone looks at the entire picture? It appearsasset allocators are beginning to move in that direction. Technically, we wouldlike to see gold break above the $1,237level. We’ll leave a little on the table until we get this confirmation.Downside support, remains at $1,220.
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