The Last Time Gold & Dollar Did This, Gold Won - Rick Rule
Investor sentiment towards gold was positive at the Mines & Money conference in New York, and this outlook was shared by one of the speakers of the event.
In an interview with Kitco News, known gold bull and Sprott U.S. Holdings chief Rick Rule said he remains bullish on gold despite the weakness in prices and despite the stronger U.S. dollar index.
“There’s been three times in my career where gold has done well in U.S. dollar terms during a period of U.S. dollar strength,” he said. “In each case, that ended with the dollar rolling over a bit and gold doing extraordinarily well.”
Gold prices have been under pressure lately as risk appetite grew in the marketplace, with gold futures Tuesday hitting a seven-week low. June Comex gold futures last traded at $1,223.30 an ounce, bouncing $7.20 for the day. Meanwhile, the June U.S. dollar index has eased 0.089 point to 99.455 after Tuesday hitting a high of 99.565 that was its strongest level since April 21.
The marketplace is also waiting to see what effect U.S. President Donald Trump will have on the yellow metal, but according to Rule, gold prices are likely to “do well” regardless of what Trump does.
“The truth is I think the gold price will do well, with or without Trump. I think Trump gets people very emotional so he’s very important to the narrative, but I think he’s irrelevant to the reality,” he said. It is real U.S. interest rates that will be driving gold, he added.