Can the New Gold Rally Keep Going?

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Feb. 18 (Bloomberg) -- Bloomberg’s Julie Hyman and Larry Shover of SFG Alternatives look at the gold market on today’s “Futures In Focus” on Bloomberg Television's "In The Loop."

The chief investment officer at sfg.

Is it a bounceback or other fundamental reasons that gold has been rising?

I think it is a little bit of both.

Let's keep it in context.

We have had a broad market sentiment shift.

We went risk onto nervous neutrality.

-- on to nervous neutrality.

It is waking up a lot of shorts in the market.

We have seen a lot of short covering since mid-january.

They picked up steam last week as we broke on monday and on friday -- a 200-day moving average.

As a trader, unless there is a change ash a clear-cut change in sentiment, i do not think this rally is going to continue.

I think it is being met with supply overhang.

It seems like a lot of the big strategists agree with you.

Some of the most accurate strategists are bearish.

They think that this rally is short-lived.

Yes.

How are you betting on that?

Are you shorting gold?

I am looking for spots to so gold.

Especially last week when we saw the commitment of traders report come out that there were new loans in the market.

Is -- it is being met by some demand.

I would give any opportunity to sell gold as a traitor.

As investors, it is a different story.

I think having gold in your portfolio makes sense.

I'm speaking on both sides of my mouth, as a trader and an investor.

That is more as a hedge that you would hold that?

Absolutely.

We have never seen this central-bank monetary policy.

It make sense to have in your portfolio as a hedge.

I know that chinese demand is set to overtake indian demand in the next several years.

How will that play into the fundamental equation for gold?

I figure this continues to keep a premium in the gold price.

Indian demand has been very strong as of late because premium for gold has dropped to $30 to $40 per ounce.

We are not sure how accurate the news out of china is.

Enough to keep a premium in the price.

Thank you so much.

This text has been automatically generated. It may not be 100% accurate.

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