Gold nears breakout as Goldman upgrades precious metals on ‘debasement fears’
“In 2020, the virus has led to unprecedented fiscal and monetary stimulus. It remains unclear how much more stimulus will be deployed by DM governments, how the resulting deficits will translate into higher taxes down the road, and how long monetary policy will remain ultra-loose. Finally, it is unclear whether the crisis leads to second round shocks, such as social unrest, political volatility, or rising international tensions. In such an environment, demand for defensive assets (gold in particular) will continue to expand, in our view.”
USAGOLD note: We referenced this Goldman study on Monday. Zero Hedge quotes from the report in detail at the link above. In short Goldman upgraded its twelve month forecast on gold to $2000 and $22 on silver.
Repost from 6-23-2020