00:00James what is it about this level I mean we pulled back at the beginning of the Iran war perhaps
00:04some you know looking for cash or liquidity but we're holding on to this level for dear life.
00:10What is it about 4700. I think it's a case of gold being caught in a tug of war between
00:17inflation and interest rates like like a lot of securities at the moment.
00:22But gold traditionally is a hedge against inflation. Then again gold doesn't carry interest. So when interest rates rise relatively
00:32less attractive.
00:34So I was speaking to Matt MacLennan of First Eagle value just the other day and they have a 15
00:40percent allocation to gold and trimmed it a little bit when we got to see the highs.
00:44But his point was that actually gold has really only returned to slightly below its 50 year average relative to
00:51equities.
00:51So this massive run up that everyone said is overdone perhaps shouldn't be seen that way. What are analysts saying
00:58James.
01:00Well there's been a few reports coming out about you know gold being attractive again. Again it depends on your
01:06view on inflation. It depends on your view on interest rates and and of course what's going to happen
01:14in the Middle East. So again it's caught between we're doing different different dynamics or different tensions.
01:23So as as inflation ripples out into the broader economy what that means for gold how central banks react.
01:31And of course gold is also typically has an inverted correlation to the dollar or becomes more attractive as the
01:38dollar weakens and vice versa. So there's another factor in the mix.
01:41What are we seeing from institutional demand particularly China and India.
01:47Well from what I'm hearing it's it's it's strong. But again it's you know there's no clear direction right now.
01:54So that makes it makes it challenging.
01:57but thanks for exchanging.
01:57But yeah
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