PRECIOUS METALS | Guy Adami Says Central Banks May Keep Buying Gold, Leaving Room for Gains This Year

Guy Adami, co-founder of RiskReversal Media and a “Fast Money” trader, said gold was “not out of the game” despite multiple headwinds. According to Jin10, Adami said there were rumors that central banks may have sold gold early in the war, though he said there was no conclusive evidence. He added that in a market environment where Micron’s market value surged by $130 billion in after-hours trading, some investors question why they should buy gold. Adami said he still viewed inflation as a problem and expected interest rates to rise. He said he understood the headwind from the U.S. dollar but believed conditions could reverse at some point and gold could regain favor. Adami said gold was down about 24% from its historical high, arguing that it did not make sense to expect an immediate new surge. However, he said he still believed global central banks would continue increasing their gold holdings, leaving gold with an opportunity to rise during the remainder of this year.