As Gold Prices Decline, Fund Manager Sentiment Grows

Gold declines almost two percent, but sentiment is seen as growing.

Bullion.Directory precious metals analysis 17 February, 2015
By Christopher Lemieux
Senior Analyst at Bullion.Directory; Senior FX and Commodities Analyst at FX Analytics

The precious metals complex is getting hit hard today, but maybe that is no surprise given that fund managers are getting a bit more bullish on gold.

According to a poll conducted by Bank of America Merrill Lynch, 40 percent of fund managers seeing gold higher in 12 months time. The primary reason is most notably the growing possibilities of a “Grexit,” or exit of Greece from the European Union.

The poll also expressed concern over the slowdown in the Chinese economy, which will weigh down emerging market equities.

Only three percent of fund managers see the yellow metal as overvalued, down from 20 percent in December.

The underlying rot throughout the global economy and geopolitical scene is beginning to rise to the surface. No longer are the fluffy economic numbers that are barely good enough to make money managers happy.

Be it as it may, gold is lower. Those bullish on the metal now have an opportunity to dollar-cost average their positions, if they see fit.

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