Price forecasts indicate that gold will now reach $2000 according to one analyst, who says the continuing fallout from coronavirus was “the straw that broke the camel’s back” for global economies.
The CEO of global asset management firm Sprott, Peter Grosskopf said, “What the coronavirus added [was] a shock to the economy. I would call it the straw that broke the camel’s back. Economies were already at best shuffling along with a lot of weakness in Europe and China, and this is going to just push things over the edge. China already pumped a massive amount of liquidity into their system in order to offset the shock to the banking system there. They are already printing as fast as they can. Now, you are going to get the same sort of thing in Europe with Italy taking a major hit to GDP. You don’t need to be an economist or a student of macro markets to understand that this was not in the plan.
“I recently reviewed a charting package from Cornerstone Macro. The charts almost all unanimously point to between $1,800-$2,000 easily. Gold’s sentiment right now is running very strong. And usually when sentiment runs very strong, there is room for a bit of a short-term correction but nothing major. I would say pretty confidently that the charts point to $2,000 plus.”
With reports now stating that coronavirus could hit America and become a global pandemic, now is the time to buy gold with confidence.