As we have reported, a gold run is widely expected for gold with numerous institutions and analysts predicting figures in the $2000 range for the precious metal towards the end of the year. We could see that gold run pick up pace as early as next quarter however according to one expert, who sees $1800 as being likely in Q3 or Q4.
The Gold Forecast editor, Gary Wagner said Wednesday that the news of zero interest rates sticking around until at least 2022 and the potential of a second wave could be the spark that gold needs to ignite further price rises.
He noted that while the Fed continues to add to the balance sheet, gold should continue to move to the upside, stating, “This is an exciting time in terms of what we expect to see gold do over the next year. The Fed is willing to do exactly what it takes to prop up the economy… that has to be put back at some point. We have not even begun to encompass or feel that economic fallout that will come from the moves made by the Treasury department and the Federal Reserve.
“If there wasn’t a second wave, I would be very surprised. I think there almost has to be because of the large masses of people that came together without masks, and without social distancing. We have been caught for about three months in between $1,680 and $1,750 an ounce, it’s going to have to break below or above those range levels before we see the next move. My feeling… is the break will be to the upside.”
Buy now to be in prime position when that break happens.