We believe 2016 was a base-forming phase for gold, probably a precursor to a bull market. In addition to the fundamentals which drove the gold price higher 2016, there are a number of risks which further support the price of gold in 2017.

The stock market rises since the US election reflect a consensus for robust economic growth under a new US president however it seems the market is ignoring many potential risks the new administration may face. These include attempting to change trade treaties, immigration policies, the national debt and Fed tightening. Potential moves by China or Russia, disarray in the EU and strife the Middle East could also impact the administration's efforts. We believe many of these risks will surface in 2017, reversing the positive sentiment in the stock market and US dollar to gold's benefit.