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Gold traders are most bullish since 2015 on New Year concerns
[LONDON] There's one thing almost all gold traders and analysts agree on, now is a great time to own bullion.
Those surveyed by Bloomberg were the most positive they've been on the metal's price outlook since the end of 2015, with 14 saying they're bullish on the metal, two bearish, and one neutral.
Worries over political developments in Europe, and in the US following Donald Trump's election, as well as expectations of stronger demand ahead of the Lunar New Year were cited as factors.
"The euro zone has plenty of crisis triggers over coming months; Indian and Chinese buying remain strong and Trump's policy threatens inflation," said Adrian Day, president of Adrian Day Asset Management in Annapolis, Maryland, which oversees US$190 million.
"All this is positive for gold."
The metal for immediate delivery has risen every day this year, gaining more than one per cent to about US$1,180 an ounce during London trade on Thursday, according to Bloomberg generic pricing.
The metal rose 8.1 per cent in 2016, its best performance in five years. Demand for gold as gifts in China normally rises before the Lunar New Year, which this year starts at the end of January.