Gold prices will settle at their best levels since January 2013 as demand, market uncertainty, and liquidity are driving the yellow metal on Monday.
Interestingly enough, gold is joining the broader market rally. Nearly everything is up.
To kick off the trading week, gold surged to just under $1,690. The yellow metal is poised to top $1,700. But with so much momentum in gold and still so much chaos occurring in global financial markets, will gold soon test $2,000?
While gold did crash during the March market mayhem, the selloff occurred because investors were liquidating their holdings to cover their margin calls and get into cash. Now that the Federal Reserve has pumped trillions into the economy, traders are confident about holding their positions.
This is bullish for gold, especially with rampant price inflation on the other side of the national lockdown. These are unprecedented times, and that is when you hold gold and silver.
Silver, meanwhile, will top $15. Could it return to $20 soon? After plunging below $12, it might happen.
There is going to be so much inflation in the next 12 to 18 months that the Fed may need to raise interest rates. Plus, you still have the inflation that the Fed has held onto since the 2008 financial crisis. The problem is that the U.S. economy has proven that it teeters on the brink of devastation anytime there is tightening.
Does this mean a dollar collapse? Many libertarians have warned about the collapse of the greenback for years, but the market keeps propping it up. It isn’t so much that the buck is a beacon of fiscal prudence, but because everything is terrible.
In other metal markets, copper is up to $2.21, platinum picked up $14 to $732, and palladium crashed $45 to $2,060.
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