Gold Bull Not Over - Analyst
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Spot gold prices have fallen 8 percent in three months, losing 3.5 percent in the past week alone, but an analyst at Morgan Stanley doesn't think the bull market is over.
U.S. real estate interest rates are still negative, which is supportive of gold prices, according to Hussein Allidina, an analyst with Morgan Stanley. He also says that most investors have held onto their ETFs, which is another bullish sign.
The biggest driver behind the rise in gold prices might be central banks, who have been adding the precious metal to their reserves. According to Allidina, they are still buying, and this is clearly another positive sign. So, despite the sell off, gold which can be traded using the ETF (NYSE: GLD), might still be a buy.
U.S. real estate interest rates are still negative, which is supportive of gold prices, according to Hussein Allidina, an analyst with Morgan Stanley. He also says that most investors have held onto their ETFs, which is another bullish sign.
The biggest driver behind the rise in gold prices might be central banks, who have been adding the precious metal to their reserves. According to Allidina, they are still buying, and this is clearly another positive sign. So, despite the sell off, gold which can be traded using the ETF (NYSE: GLD), might still be a buy.
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