Gold Is Winning New Fans
- Pictet turns constructive as bullion clears $1,300 bar
- Still, Pimco reckons metal is a sell on real-rates basis
Gold Gains After Weak U.S. Jobs Data
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After nosing above $1,300, gold is winning new fans as tepid U.S. inflation anchors Federal Reserve policy and President Donald Trump’s growth agenda risks running into the sand.
The metal should trade above that level in 2018 as the dollar weakens and the Fed sticks to just two rate hikes, in December 2017 and then March, according to Luc Luyet, a currency strategist at Pictet Wealth Management, a unit of the Pictet Group, which managed $500 billion as of the end of June. Luyet’s “constructive” call is based on inflation lagging the Fed’s 2 percent target and Trump’s administration failing to deliver any significant fiscal boost.