It is not only libertarians who are bullish on gold. With the Federal Reserve running the printing press 24/7, it turns out that some Wall Street titans are raising their price targets for the yellow metal.
The latest financial institution is the Bank of America.
In a report titled, “The Fed Can’t Print Gold,” BofA analysts increased its 18-month gold-price target to $3,000 per ounce, more than double its previous forecast.
The report authors cited the fast amounts of fiscal and monetary stimulus employed by governments and central banks to shore up their economies impacted by the Wuhan Coronavirus.
“As economic output contracts sharply, fiscal outlays surge, and central bank balance sheets double, fiat currencies could come under pressure. Investors will aim for gold,” the report stated. “But beyond traditional gold supply and demand fundamentals, financial repression is back on an extraordinary scale.”
The main hurdles gold faces, however, is a strengthening U.S. dollar, reduced financial market volatility, and a decline in jewelry demand in China and India.
At the time of this writing, June gold futures spiked $41.70, or 2.47 percent, to $1,729.50 per ounce.
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