David Fergusson, chairman of Global Precious Metals, spoke to CNBC-TV18 about the current trend in commodities market.
When asked about gold prices, Fergusson said, “Gold is doing exactly what it is supposed to do. In turbulent market, it is always safe haven play and in volatile market specifically irrespective of whether they go up or down, gold is a good dampener of volatility within a portfolio. Obviously, that is what people are looking for right now.”
“Gold has effectively traded sideways for about five years now and there have been a lot of bears out there who have been pushing the idea that gold to get further soft, but I think now and we are certainly seeing this, the gold is now in a very constructive phase. There are certainly things that we would like to see before saying the new bull market is on particularly a move above some of the more recent highs. So, above USD 1,320/oz or USD 1,400/oz level you should say clearly that the bull market is back on in gold,” he added.
According to Fergusson,"We are not there yet but certainly we are in a constructive phase of the market."