The prices of most metals rose last year, but industrial metals substantially outperformed precious. While we had always been positive on the outlook for metals in 2016, even we were surprised by the scale of the rally. Indeed, we are now concerned that the prevailing optimism about demand could prove unfounded. As such, the prices of industrial metals, in particular, may ease back as optimism fades. That said, supply will be a differentiating factor. At the same time, more aggressive tightening by the Fed in response to some of Trump's more inflationary policies is likely to weigh on the gold price in 2017.
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