Gold Outlook 2017: CEOs Cautious About Election Result

As 2016 is coming to a close, it’s safe to say that the gold price has had a bit of an interesting year. 
In particular, some of the key highlights that impacted its price was the Brexit decision in June, Donald Trump’s US presidential election victory, and speculations the Federal Reserve would raise interest rates in December. On that note, the Federal Reserve did indeed hike the interest rates.
Although the gold price didn’t react much to the interest rates being raised, by Thursday–the day after the Federal Reserve made the announcement–the gold price was changing hands at $1,124.30–a 10-month low. Since then, it’s made a slight recovery. As 0f 4:29 p.m. EST on Monday, the gold price was $1,138.90 per ounce.
Of course, the gold price isn’t the only thing that impacted the market in 2016. To learn more about what companies had to say, the Investing News Network (INN) reached out to company executives and CEOs in the space.
Below, Douglas MacQuarrie, co-founder of Asante Gold (TSXV:ASE), Warren Stanyer, president, CEO and director of Nevada Sunrise Gold (TSXV:NEV) and Charles Daley, corporate communications at Avino Silver & Gold (TSXV:ASM) share their thoughts on the gold market for 2016 and the gold company outlook for 2017.

INN: At the end of last year, what did you expect from 2016? 
DM: Major volatility – especially with currencies – and thereby driving some savings into gold and raising gold price.
WS: I expected a very strong beginning to the year as well as a stronger gold market.
CD: As a silver and gold producer, our commodity prices were affected most by the uncertainty in the markets created by the lead up to the Brexit vote, and then US election which saw both silver and gold appreciate significantly. However, following the US election the prices for both declined significantly which came as a big surprise to many in the industry.
INN: What was the highlight/biggest impact for the gold commodity at your company in 2016? 
DM: The election of Donald Trump as president elect of the US. This ‘wild card’ will drive even more volatility in the world;s financial market, and even more savings will look for partial safety in gold bullion and good gold shares.
WS: In 2016, the gold price recovered nicely from its 2015 lows, which was good for Nevada Sunrise at times.
CD:  The highlight for Avino in 2016 was the declaration of commercial production on April 1 at the main Avino Mine, our flagship operation. Following the declaration, our top line revenue figure increased significantly, which along with good timing  helped our share price to increase substantially over the summer and into the fall.

INN: What do you expect from the gold sector in 2017? 
WS: A better market, indeed. The result of the US election has spurred the prices of some (industrial) metals, which is good for all junior companies.
CD: It’s very tough to predict at this stage given the rhetoric south of the border. It’s difficult to know what type of policies are actually going to be pursued by Donald Trump. That being said, Mr. Trump along with the Federal Reserve have indicated that they would like to raise interest rates which would be bad for gold and silver, however, he has also promised massive tax payer subsidized infrastructure projects along with lower taxes for corporations and the wealthy. It’s hard to imagine how he plans to pay for all of this with a significantly decreased tax base, meaning it’s definitely within the realm of possibilities that there will be more financial turmoil ahead which has historically been good for gold.
INN: What is your prediction for the gold price in 2017?
DM: It will go up 20 percent [editorial note: which will fall somewhere between $1,300 and $1,400 from its current price].
WS: I believe that gold will close the year over $1,200 an ounce.
CD: I believe gold will range between $1,200 and $1,400 respectively.
INN: What excites you the most about gold in 2017? 
DM:  Currency wars. They have already had large devaluations in Chinese RMB, British pounds, Russian rubles and Australian and Canadian dollars amongst other–basically, all against a strong US dollar.  We are now in a world of ‘beggar thy neighbor” with respect to currency devaluations. I believe under Donald Trump’s anti UN anti Europe isolationist – America first thinking – that the US will join in and drive the dollar lower to increase America’s ability to compete. 
WS: After 5 years of these market conditions, you take one week at a time.
CD: Watching from Canada the chaos that ensues south of the border after the inauguration in January. It will also be interesting to see if anything comes about as a result of the recent revelations around the fixing of the gold/silver price which has been quite prevalent in the news lately.
Don’t forget to follow us @INN_Resource for real-time news updates.
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 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.
Asante Gold and Nevada Sunrise Gold are clients of the Investing News Network. This article is not paid for content.
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Gold Outlook 2017: Analysts Call for Price Increase