Gold Will Keep Climbing as Long as Fed Keeps Experimenting

Gold is up 26 percent so far in 2016 and heading into the fall the greater risk remains to the upside due to the tremendous amount of money sloshing through the system, said Josh Crumb, founder of Goldmoney. 'The last couple of years the expectation was exiting monetary policy and raising rates,' said Crumb. 'And after China and oil and credit problems in the first quarter, the market realized that it is going to be very hard to exit this liquidity trap and that's when the market revalued gold back to where it was a few years ago and I still see that asymmetry.' Crumb said the potential Federal Reserve interest rate hike this September will not hurt gold prices because gold prices are a function of historically low real interest rates. Also helping the yellow metal, in Crumb's view, is the dislocation in the currency markets, especially post-Brexit. In terms of new supply hitting the market and knocking down the price, Crumb says gold will generally remain immune.