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2020-07-09 — marketwatch.com

Chalk it up, in part, to opportunity costs. Efforts by global central banks to push down interest rates, which have fallen into negative territory in real, or inflation-adjusted terms, in the U.S. and are outright negative in many parts of the world, mean that investors who hold gold aren't missing out on the yield they would earn from holding bonds in more usual circumstances.

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"Firstly, central bank policy is a strong driver behind higher gold prices. Not only are official rates close to zero in a large number of countries, they will unlikely go up in our forecast horizon," Boele wrote.

Most central banks have announced quantitative easing, with the Federal Reserve embarking on unlimited QE and the Bank of Japan and the European Central Bank also implementing large programs. "This sounds like music to the ears of gold bugs as money floods into the market and currencies begin to decline," she said.

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"Now the psychological resistance of $1,800 per ounce has been surpassed. It seems that investors will only be satisfied if the former (intraday) peak in gold prices at $1,921 per ounce is reached and taken out. Above that, the important psychological level of $2,000 per ounce is within reach," she said.

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