FX.co ★ Gold to turn up soon

Although price has bounced noticeably from the recent 10-month low, gold bulls still have nothing to celebrate.

Not even when gold closed above $ 1,700, nor when the US government approved the long-awaited $ 1.9 trillion bailout bill and the European Central Bank increased spending as part of its emergency asset purchase program.

All these events should have been extremely optimistic for gold, as they are inflationary and lead to further money printing. However, investors barely noticed it. Instead, they continued to focus on improving economic conditions.

This is because after signing the new stimulus bill, President Joe Biden announced that the US government will purchase an additional 100 million vaccines. It led to Treasury yields hitting a new all-time high above 1.6%.

Statements during the recent mining conference also point to more favorable conditions of other metals than gold.

Copper and other base metals associated with the development of green energy are attracting a lot of attention, so many analysts expect this sector to attract more investment capital than gold.

But even if gold lost a bit of its luster lately, several major players still support the metal.

Mark Bristow, CEO of Barrick Gold, the world's second largest gold producer, said that he expects another price spike in gold.

"This is similar to what happened in 2008. But the difference is that the liquidity that was provided between 2009 and 2011 was seized by the banks. This time it came from the market," Bristow said.

Meanwhile, DoubleLine CEO Jeffrey Gundlach said gold could be poised to rebound as its recent sell-off was very "powerful."

"We don't think gold will continue to fall," Gundlach said.

Peter Grosskopf, CEO of Sprott Inc, also noted that he sees real value in precious metals and that inflation will push gold up soon.

And in a Bloomberg poll last Friday, a larger percentage of opinion was split towards bulls.