A briefing from Bloomberg Intelligence issued yesterday (Tuesday) confirms what many have already suspected – gold is about to hit new highs. According to analysts, investors should expect to see gold gaining in a similar manner to that of the 2008 recession with an initial lull followed by steady gains.
Senior market analyst Mike McGlone expects this to equate to $1900 in the not too distant future. He said, “With base rates at zero or negative, and the Federal Reserve embarking on seemingly unlimited monetary stimulus akin to 2008, we see gold extending its $1,900-an-ounce peak as the next in a stair-step recovery process,” McGlone said in the report. “If following the script from the 2008-09 financial crisis, the term “recovery” portends new highs for gold. About $1,000 was the initial threshold then. In today’s climate, it’s comparable to $1,900.”
Only in the second half of 2009 did gold prices recover and reached a level of over $1,000 per troy ounce (eventually, the gold price would reach a record high of almost $1,900 per troy ounce in September 2011).
With price action intensifying as nations around the world struggle to get to grips with corona, now is the ideal moment to buy.