Market volatility driven by trade policy uncertainty has recently helped gold touch new record highs. Bart Melek, Global Head of Commodity Strategy, TD Securities joins MoneyTalk to discuss how continued uncertainty and other factors could help gold prices continue to climb.
Transcript
Greg Bonnell: Global trade uncertainty, shifting policy out of Washington has sent gold on a record-breaking run. But with the tone changing in recent days around possible talks with China, have the fundamentals changed for the precious metal? Joining us now to discuss is Bart Melek, global head of commodity strategy at TD Securities.
Bart, always great to have you on the show.
Bart Melek: Oh, it's wonderful to be back.
Greg Bonnell: Things can change so fast. What was it, a day or two ago, we were just discussing the discussion we were planning to have on this show. Gold has moved south in a sizable move just in 24 hours. To me, it sort of speaks to the volatility. What are we thinking about these moves in gold?
Bart Melek: Well, I think, for one, we will continue to see volatility. Certainly, policy doesn't seem to be a nice steady move towards a particular goal. It seems a little erratic from time to time. Just on Tuesday, we've seen gold touch $3,500, so an all-time record yet again.
We've seen corrections prior to that. And then we've seen several things happen. One, of course, there was a big risk-off a few days. And gold tends to do better when there's a lack of confidence in risk assets broadly. And then, of course, we had the US president be quite vocal about disagreeing with Mr. Jerome Powell, the Fed chairman, about policy.
And the president suggested he would like to see lower rates faster, and maybe deeper cuts
