Since the US Federal Reserve announced that it will raise interest rates for the second time in three months, the gold price has been on a tear.
Prior to the central bank’s Wednesday (March 15) announcement, the yellow metal was trading under $1,200 per ounce. However, it’s gained 0.57 percent since then and was sitting at $1,226.20 as of 6:21 p.m. EST on Thursday.
According to Mercenary Geologist Mickey Fulp, that’s no surprise. Speaking to the Investing News Network at this year’s Prospectors and Developers Association of Canada (PDAC) conference, he said that market uncertainty is “always good for the gold price.”
“Gold is a safe-haven insurance policy against financial calamity,” Fulp commented. “When the world is in turmoil, or economic distress, that’s always positive for gold.”
The Fed isn’t the only factor that’s brought turmoil in the last several months. US President Donald Trump has caused plenty of uncertainty, and Fulp believes that he will continue to influence the gold price.
“Any time Trump stirs up the pot, if you will, gold will react one way or the other, usually to the upside,” he said. Trump has said a number of times that he doesn’t want a strong US dollar, and Fulp believes that the US dollar will be the key driver of the gold price moving forward.
That said, Fulp doesn’t think there will be an excessive amount of uncertainty moving forward. He sees the gold price ending 2017 higher than it was at the beginning of the year, but said the yellow metal is still a long way from reaching its highest point of nearly $2,000 back in 2011.
“I think we’re personally a long ways from $1,900 gold again,” he stated. “If that would happen, it would imply that the world’s in economic turmoil, and I don’t think it’s going that way.”
Listen to the interview above for more of Fulp’s thoughts on gold and the resource space.
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Securities Disclosure: I, Jocelyn Aspa, 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 contributed article. 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.