Monetary Policy Still a Big Driver of Gold: Shover

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Feb. 25 (Bloomberg) -- Bloomberg’s Olivia Sterns and Larry Shover of SFG Alternatives look at the gold market on today’s “Futures In Focus” on Bloomberg Television's "In The Loop."

With slower bullion demand out of asia.

Larry, gold has seen some solid support this year so far, what he big is going to be the key driver for gold prices in the coming months?

I think the drivers are going to be the wholesale liquidation ending.

That is what we are seeing right now.

That is what has caused a run-up , a string of bad data, and the effect and rates.

Now we're at 2.73%. that is going to cause us to digest and consolidate a little bit.

We have to look at physical demand, it has been steady in china.

India has been a driver and something most people are not talking about, there continues to be the speculation that they are going to repeal the 8020 import export regulation.

That has called -- caused the premiums that india to fall quite a bit.

It has been dropping steadily since october.

What is your year-end target?

My year-end target is about 1280. i do not see it.

At the end of the day, monetary policy is going to be the sort over gold's had --0 head.

The normalization of policy is going to drive gold's price.

The bigs we're going to see much bigger run ups in agricultural commodities later this year.

Well baby is your year-end target -- $1280 is your year-end target, where are we right now on that supply and demand equilibrium?

Supply is quite good, and inventory is stable.

If we had that 13 60 area, we have a lot of people are going to want to get out.

1400 would be the next void, but there seems to be a lot of good inventory, or uncovered supply at those price points.

We saw that last week when we broke the $1300. thank you so much for your thoughts on gold . on the markets again in 30 minutes.


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