The market update covers macro factors shaping gold’s recent price dip and the rational for investing in gold mining equities.
Fahad tackles specifically why we are seeing a decoupling between gold prices and real rates. We discuss a potential change in the Fed’s policy and when this may occur.
The broader macro picture is considered and what this means for a bullish outlook on gold in the near term. How the performance of gold producers with consistent free cashflow and healthy balance sheets make for relatively undervalued equities. And we touch on the rolling impact of crypto currencies emergence on capital allocation to gold again.
Fahad Tariq, Vice President, Equity Research – Precious Metals, Credit Suisse