– Gold gains in USD, GBP, EUR, CAD, AUD, NZD, JPY

– Gold gains in CNY, INR & most emerging market currencies

– Gold surges 31.5% in British pounds after Brexit shock

– Gold acted as hedge and safe haven in 2016 … for those who need safe haven

– Further signs of market having bottomed and bodes well for 2017

– What drivers will gold respond to in 2017?

– EU elections and contagion risk, Geo-politics, terrorism, war and cyber war

– Outlook for gold good during Trump Presidency (2017 to 2020)

gold-2016Click on to see enlarged table

Source: GoldPrice.org

Gold was the best performing currency in 2016, rising as it did in all major currencies. It again performed the function as a hedge against currency devaluation and this was seen particularly in sterling terms with gold rising 31.5% in British pounds after the Brexit shock.

gold-chart-2016Gold in USD in 2016

Gold prices closed 2016 at USD 1,159.10, EUR 1,098.36 and GBP 942.58 per ounce.

Gold prices closed 2015 at USD 1,062.25, EUR 974.32 and GBP 716.36 per ounce.

(Gold AM fixes on December 30th 2016 and December 31st 2015 respectively)

UK investors and savers who had an allocation to gold protected their wealth from the Brexit debacle and the sharp falls in sterling seen in its aftermath. Gold rose over £220 per ounce and acted as a classic safe haven for investors exposed to the pound, and markets and assets denominated in British pounds.

gold-gbp-2016

Gold in GBP in 2016

The gains in euro terms  were more modest but robust. The gains seen are likely due to the continuing massive ECB money printing and debt monetisation programme and heightened risk of contagion in the Eurozone.

Brexit and the elections in France, Germany and Holland will support gold in euro terms in 2017 and there is the possibility of sharp gains in euro terms should the Eurozone debt crisis return.

gold-euro-2016Gold in EUR in 2016

What drivers will gold respond to in 2017?

  • Italian, Greek, Irish, Spanish and other banks and risk of bail-ins

  • Dutch, German, French elections … Eurozone contagion

  • Continuing ultra loose monetary policies by Fed, BOE, BOJ and especially ECB

  • Trump policies and tweets …

  • Geo-politics, cyber war & terrorism, conventional war & terrorism

President Trump has already shown himself as a man who likes to tweet and knows the power of the short sound bite and the medium that is Twitter. His skill in this regard was one of the factors which helped him become President.

However, this asset may become a liability for him and for markets when he becomes Preside