Gold costs have seen an unbelievable surge of momentum with costs pushing to a contemporary nine-year excessive above $1,850 an oz and one ma
Gold costs have seen an unbelievable surge of momentum with costs pushing to a contemporary nine-year excessive above $1,850 an oz and one market strategist sees gold costs shifting greater via the remainder of the 12 months.
Marc Chandler, chief market strategist at Bannockburn World Foreign exchange has been bullish on gold because the begin of the 12 months and in an interview with Kitco Information, he mentioned that within the present atmosphere gold costs may simply push to $2,000; it’s only a matter of when.
Chandler’s feedback come as August gold futures final traded at $1,863.80 an oz, up 1% on the day.
“I believe that we’ve some upside nonetheless on gold and $2,000 may simply be a conservative estimates,” he mentioned.
Nonetheless, Chandler added that buyers ought to use some warning at present ranges as markets don’t at all times go up in a straight line.
“I believe it does make me cautious seeing the robust, upward momentum. I do look into the technical indicators and loads of these are getting stretched,” he mentioned. “However it’s not a query for me of liquidating my purpose place, it is extra a query of being ready for a pullback.”
Low rates of interest for longer and additional weak spot within the U.S. greenback are main tailwinds for the dear steel, Chandler mentioned. He added that the U.S. greenback seems to be on the cusp of a brand new multi-year bear market.
“I have been bearish the greenback and it kind of lined up with my bullish gold view. However now I believe loads of different individuals have joined his greenback bear occasion and I believe gold advantages from that as effectively,” he mentioned.
rates of interest, Chandler mentioned that gold will proceed to shine as $14 trillion in international sovereign debt stays in damaging territory. He added buyers ought to count on to see extra authorities debt sooner or later.
“Initially it was about stabilizing the markets. And I believe now I believe most individuals agree that markets have been stabilized, however the second section of what the fed has bought to do is absolutely help the financial system,” he mentioned. “I believe that can necessitate increasing its stability sheet additional.”
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