3 Factors May Sustain 'Gold Fever'

GoldAsgoodAsItGetsBuy More Gold Now, Societe Generale Says -Barrons
"The price of gold hit its highest point since May 2013, and it could keep rallying...Societe Generale's Alain Bokobza reiterated a bullish view on gold in a note on Tuesday, writing that three major factors could sustain a 'gold fever.' 1. The current stage of the economic cycle - Societe Generale's asset-mapping framework is currently signaling a higher allocation into gold, according to Bokobza....

2. Safe-haven assets are scarce - Bokobza believes the U.S. is nearing an economic slowdown or an outright recession, which would make portfolio protection a prudent move....3. Central bank purchases - Central banks, which are seeking diversification away from the dollar, are building gold reserves that could 'sustain steady growth for a prolonged period,' Bokobza noted....The growing threat of a currency war in recent days could add to this momentum and prove an overall tailwind for gold."