VIDEO - Adrian Day: The Biggest Problem for Gold Right Now

At this year’s Prospectors and Developers Association of Canada (PDAC) convention in Toronto, the Investing News Network caught up with Adrian Day of Adrian Day Asset Management, who shared his thoughts on the gold space and what’s ahead for the yellow metal in 2019.

“I am quite constructive on the price of gold,” Day said.

He added, “I think there are several things that are positive for the gold price,” with those including stock market volatility and the US Federal Reserve.

In January, the central bank decided to hold interest rates steady, noting that it will be “patient” before making any other decisions.

“What it is more important is not that the Federal Reserve put a pause in interest rate [hikes], but that they put a pause in the face of stock market volatility,” Day said.

“In other words, they are unable to pursue the policy they want to pursue because they are afraid of the consequences, so that is very positive for gold.”

Day also shared his thoughts on copper, saying that one of the macro challenges is what happens to China, both in terms of a successful trade deal with the US and what happens to the electric vehicle market within the Asian country.

“For juniors the challenges are much the same: they need to raise money. Exploring for copper can be more expensive than exploring for gold,” he said.

Speaking about the commodities he is avoiding this year, Day pointed to battery metals.

“Despite the drops we’ve seen in lithium and cobalt, I remain relatively uninterested in those commodities,” he said, suggesting that investors need to remember that different commodities have different market dynamics, so understanding the gold market doesn’t necessarily translate into understanding all markets.

Watch the video above to find out more about Day’s thoughts on commodities in 2019 and what companies he interested in right now. You can also check out our other PDAC 2019 interviews here.

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Securities Disclosure: I, Priscila Barrera, 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 the interviews it conducts. 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.