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Is the Gold Rush Over for Investors?

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    RBC Capital Markets Global Futures V.P. George Gero on the outlook for gold prices.

  • Duration 4:16
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-- all right you we talked a little bit about gold but gold has been everyone's favorite safe haven twelve straight.

Years of gains for this contract but -- gold has lost some of it Schein cares what's happened in the precious metal is trading in a one must flow right now.

Breaking through some key technical levels to the downsides -- is the gold rush over joining me now is George Gerald RBC capital markets global futures.

Vice president let's talk about this because -- the biggest buyers of gold in the world are China and India.

Are we said Japan -- -- pull back do you think in those markets or is there another.

Story here.

Well there's more to it than that today first of all we -- she's seventeen meeting of ministers who are concerned.

About the yen.

Going to new lows hurting exports to the UX.

And then of course there's more to it to back.

The group of seven ministers are now worried about currency fluctuations.

That put the dollar up.

Putting the dollar -- makes gold more expensive and they turn.

And to forgive me and it but wouldn't explain really kind of -- longer.

News story well here we're one month old let me ask is that I don't not plus even gold for all the -- -- -- me I'm a little bit -- no no -- that's the wealth of stocks.

-- up all locked.

And this up over in the stocks was a headwind for gold for asset -- K yours and who need to barring something that's always performing.

And gold wasn't performing because it's misunderstood.

People who behind gold are buying to preserve purchasing power -- their word about inflation.

Now we've had low interest rates anti inflationary.

We've had a good stock market.

Which also is a headwind for gold and then.

And all of a sudden if you realize.

That the values of currencies have made gold more expensive especially in those countries like India with a very weak rupee.

Japan which is on holiday across China of course -- -- this.

Let's ask is that then there's that would say again gold today we're losing more than seventeen dollars is that because of a bit about what -- -- holiday -- because that is not -- leaves -- traders aren't even.

Then I -- -- there and they're not looking.

Also about the dollar even okay here because you know one of the things and some of the criticism that's been loved the Fed obviously is under pressure from a dollar -- inflation it's always been good.

For commodities we still have a -- dollar cleaning up today we still -- overall have a weak dollar yes we -- has been strengthening against the rest.

That doesn't really bode well it's a long 120 grew to 137 and and our background were 33 what does that but that -- really bode well from what I'm saying.

It for the next year anyway for the -- well.

What act bodes well for the gold contract long term we'll be return to basics and inflation.

While commodity prices are now lower for now.

There are probably going to be moving higher later on because the administration.

Is going to keep low interest rates and we'll keep printing.

-- you you cover more than just -- I don't wanna ask about sell or the -- there's been a lot of strength insult our -- platinum and palladium by the way.

Platinum is used and palladium to crack crude oil that -- heating oil and gasoline.

-- a -- -- my volume is the only commodity -- you now let's treat it will cause -- But overall let me ask this so so again to going back to that's over vs gold let me -- they're kind of -- -- -- -- and away from gold do you think -- soon.

There is a bridge between inflationary demand.

Investment demand.

And and industrial demand and when you're going to have more stimulus on three continents at once -- -- -- repurchasing.

-- silver needs for industrial use you'll see better performance -- silver.

It's interesting -- right really -- Copper hop -- is wonderful side of the economy you need about forty pounds of copper per -- you need about 400 pounds of copper for the average home never mind commercial hopes.

So.

Copper is now going to be -- After we start the reconstruction said he.

And after the Japanese and Chinese.

Go back to needing copper.

For their manufacturing needs to export to us somebody -- Ford GM and Chrysler -- here out thank you very much thank you again thanks -- you.

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