As gold slides to a two-month low on U.S. rate expectations, can the metal manage to turn it around?
Following comments from Federal Reserve Chair Jerome Powell this week that further rate hikes are to be expected, spot gold was down 0.8 percent at $1,307.54 an ounce - marking a two-month low for the metal. This would be the second straight week of losses for gold.
So what happened to expectations that this would be gold's year? According to mining legend Pierre Lassonde, the investor interest simply is not there. Lassonde, who acts as Chairman of streaming company Franco-Nevada, explained that 2018 is not going to be the metal's breakout year. "The operators are doing well, they have learned their lesson, they are focusing on margins, but if you look at the investor, they don't want to hear about [gold]," he said on the sidelines of the BMO Metals and Mining Conference in Florida this week.
"If you look at gold price sitting around $1,300 an ounce -for seven years the gold price has been up and down $100 dollars, it's not going anywhere and at the same time you have had the cryptocurrencies coming and attracting attention," Lassonde explained.
This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.