Will Rhind: Upside Favors Gold; Strong US Dollar Checking Gains for Now
Strength in the US dollar is keeping the gold price in check right now, but that won’t last forever.
Speaking to the Investing News Network, Will Rhind, CEO of GraniteShares, said the yellow metal is in a good position given market conditions and looks set to strengthen moving forward.
“(Gold has) really managed to shrug off a lot of the negatives around rising rates and a strong dollar, and I think people have got to ask themselves, ‘How much more can the dollar strengthen from here? … Realistically is there more upside for the dollar here, or for gold?’ I think clearly I’m in the camp of favoring gold on that one,” he said.
As the dollar puts downside pressure on gold, inflation is providing support for the precious metal, and despite the US Federal Reserve’s efforts, Rhind doesn’t see a quick end to rising prices.
“We like to talk about (inflation) as one simple construct, but there is inflation that perhaps the Fed is more in control of and there’s inflation that the Fed is much less in control of,” he explained.
“I think in some respects it’s kind of an unreasonable ask of the Fed to (try to control inflation) given that again there are some things that maybe they … have more control over than others.”
When asked if a recession is in the cards, Rhind referred back to historical precedent.
“I think in history we’ve never had an environment where inflation’s been above I think 4.5 percent and it’s been able to be brought down below that number without causing a recession,” he explained. “So certainly the probability leans much more towards there being a recession.”
Watch the interview above for more from Rhind on gold, as well as on the overall commodities sector.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.