Gold: On track to breach $1900 mark
“It was the cut to zero interest rates by the Federal Reserve in December 2008 that accelerated the gold bull market to the 2011 peak. Covid-19 is a worthy catalyst to buoy gold toward its highs. That fact that the metal has reached records in most currencies leads us to expect that a similar result for dollar-denominated gold is only a matter of time. 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.”
USAGOLD note: Bloomberg Intelligence senior commodity strategist, Mike McGlone’s current views on gold …… He says gold is on a launchpad similar to 2008.
Repost from 5-7-2020