Whitley Trading's Maurice Richardson thinks gold will top $2,000 an ounce!
Gold's Rise Looks Unstoppable. It Could Hit $2,000, Whitley Trading's Analyst Maurice Richardson Says.
By: Whitley Trading
Gold prices have stirred this year thanks in part to widespread declines in global interest rates, including negative yields in Europe. Lower rates tend to make gold more appealing by lessening the competition of bonds relative to gold, which yields nothing. Gold, which was off $5.50 Tuesday morning, remains well below its 2011 high of around $1,900 an ounce.
"We now expect spot gold prices to trade stronger for longer, possibly breaking $2,000 an ounce and posting new highs at some point in the next year or two" Richardson said.
Bullish factors include lower for longer nominal and real interest rates, escalating global recession risks—exacerbated by US-China trade tensions—heightened geopolitical rifts and amid rich equity and credit market valuations, coupled with strong central bank and investor buying activity.
Maurice Richardson boosted his gold forecast to $2000 while noting an increasing probability that bullion markets retest their highs from earlier in the decade.
Richardson's bullish outlook comes amid increasing optimism about the precious metal.
In a recent interview, Jens Nordvig, the founder and CEO of Exante Data, said that, given the "extreme bull market in bonds, gold will be very well supported." He noted that central banks have boosted their purchases of gold and said, "Nobody's crying when gold goes up, so there's really no anchor on how high it can go."
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