Gold to $1,900? MKM Partners says one major tailwind could give a big boost
“’As real yields continue to move lower, it makes gold more attractive,” said [MKM Partners’ JC] O’Hara. “We plotted gold along with real yields and that’s the spread between the U.S. 10-year yield less the 10-year breakeven rate. … Yields have been negative and declining for the majority of 2020, and we see no end to that trend for the foreseeable future.’ That tailwind could lift gold as high as $1,900, says O’Hara, implying nearly 7% upside.”
USAGOLD note: The Fed has said it will keep rates near zero to “at least 2022” [CNBC – 6/10/20]. If that be the case, gold has a long way to go with the wind in its sails.
Repost from 7-5-2020
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