Amid the increasing global volatility, and financial uncertainty, many investors have flocked to gold assets as a safe haven; as a result, gold prices have skyrocketed to levels not seen in almost a decade. According to US Global Investors CEO Frank Holmes, the trillions of dollars of money being printed by central banks, coupled with near-zero interest rates is causing gold to become increasingly more attractive, and could easily reach $4,000.
However, according to BMO Wealth Management chief investment strategist Yung-yu Ma, there are several impeding events that could significantly affect the current trajectory of gold prices. The development of a COVID-19 vaccine could potentially deviate some of the factors pushing gold’s record-breaking prices. Moreover, with the upcoming US election, there is a good chance that gold prices will consequently react.
Third Bridge Group, which is a New York-based research provider, anticipates that gold could fall under $1,600 following the US election, before reaching high levels once again. Refinitiv also agrees with the potential of gold price disruptions in the event of unfolding US political developments. Back in 2016 after Trump’s election win, gold prices suddenly rose an additional 5%.
Information for this briefing was found via CNBC and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.