(from our Tactical report of 10th January 2017)
The major sell-off in gold in 4Q16 offers a great tactical entry to buy gold. Gold has seen significant outflows over the past 3 months:
The macro picture also remains supportive of gold, with rising inflation expectations, still supportive global excess liquidity conditions and a great deal of political uncertainty surrounding Trump. On a mean-reversion basis, goldminers also have positive expected returns over the next 6 months.