Institutions: maintain bullish stance on gold

Gold futures prices fell and are set to end the week lower. Ole Hansen, head of commodities strategy at Saxo Bank, said that precious metals such as gold saw a strong rally in the run-up to the U.S. election. However, gold prices fell sharply after a simultaneous spike in the dollar and yields forced them lower.Hansen sees no reason to change his bullish stance on the precious metal even then. At worst, the past week's pullback was a healthy reaction to weeks of US election-focused buying. He adds that gold will be supported on three fronts: the continued deterioration of the US debt situation as President-elect Trump increases unfunded spending, central bank purchases of more gold reserves, and tariffs fuelling inflation concerns.