VIDEO — Will Rhind: 2 Reasons Gold is Stuck Under US$1,900
Will Rhind of GraniteShares said part of the reason could be that no concrete US stimulus plan has yet been announced.
After starting the year well above the US$1,900 per ounce mark, gold has taken a tumble, spending most of January below that level.
The price drop has come amid expectations of fresh stimulus efforts from US President Joe Biden, news that might be expected to provide a boost for the yellow.
Speaking to the Investing News Network, Will Rhind of GraniteShares said the reason gold remains down could be that no concrete stimulus plan has been announced so far.
“Gold rallied up to US$1,950 roughly on the back of the election results, and the promise or the hope of more stimulus, but it hasn’t actually happened as of yet,” he said. “That’s not to say that it won’t happen … but obviously as of right now, it hasn’t actually happened, so gold’s pulled back a little bit from then.”
Rhind also mentioned the risk-on environment in the market as a factor working against gold, saying that since the start of the year there have been incidents of extreme risk taking among the equities.
“I think from that perspective gold has kind of taken a bit of a backseat with this sort of fever around stock market investing,” he explained.
Despite gold’s current price point, Rhind said there are definitely reasons to be optimistic in 2021.
“Although the (gold) price isn’t back at an all-time high like the equity market, I think that there’s still good cause to be positive about gold for this year. In other words, outside of equities, where do investors go for any kind of hedge or any kind of investment that has a low or negative correlation to the market?”
Watch the interview above for more from Rhind on gold, as well as his thoughts on bitcoin and which other precious metals he’s interested in right now.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.