Fears of a vaccine pushing the gold price down are overplayed, said Lobo Tiggre of the Independent Speculator.
“I think this is another one of these overblown things. Yes, we have seen gold move on vaccine headlines, I don’t deny that, but it’s a mistake to think that 2020 gold is all about the vaccine,” Tiggre told Kitco News.
The most important fundamental drivers of gold are still tied to monetary and fiscal policies, Tiggre said.
“We have been on a volatile upward trend since late 2015, well before COVID. But even the more recent and dramatic upturn started after the Powell pivot. This is really about monetary and fiscal policy, starting, first and foremost with monetary policy. It’s about negative real rates,” he said.
Even if a vaccine were to be introduced, it would still take time for the economy to normalize, Tiggre noted, and the fundamentals behind the gold price would not change.
“Knee-jerk reactions” could still happen on the introduction of a vaccine, Tiggre said, and he would view those as buying opportunities.
“If you’re concerned about a bigger market crash, you may not want to buy every dip now. If you’re convinced that there’s going to be a big market crash and that’s going to