Randgold Resources CEO Mark Bristow told Jim Cramer on Monday that he expects #goldprices to shine in the long run.
"There are a lot of things impacting gold at the moment. I have always said that gold will be very #volatile for the next two or three quarters, but ultimately the fundamentals are very strong for a rise in gold price," Bristow told the "Mad Money" host.
Randgold's price initially soared on the panic surrounding Brexit, Bristow said, followed by confusion surrounding the outcome of the American presidential election. Thus, as the stock market continues to roar higher since President-elect Donald Trump's victory, the price of gold has been hit hard.
However, a bet on Trump could translate into investors buying gold. Trump has said he plans for tax cuts and infrastructure spending, which means the government may need to borrow a lot of money. This could prompt the economy to accelerate, and inflation to rise.
When inflation rises, people buy #gold. It's that simple.
Source: CNBC
Source : https://www.facebook.com/prithviraj.kothari
"There are a lot of things impacting gold at the moment. I have always said that gold will be very #volatile for the next two or three quarters, but ultimately the fundamentals are very strong for a rise in gold price," Bristow told the "Mad Money" host.
Randgold's price initially soared on the panic surrounding Brexit, Bristow said, followed by confusion surrounding the outcome of the American presidential election. Thus, as the stock market continues to roar higher since President-elect Donald Trump's victory, the price of gold has been hit hard.
However, a bet on Trump could translate into investors buying gold. Trump has said he plans for tax cuts and infrastructure spending, which means the government may need to borrow a lot of money. This could prompt the economy to accelerate, and inflation to rise.
When inflation rises, people buy #gold. It's that simple.
Source: CNBC
Source : https://www.facebook.com/prithviraj.kothari
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