$GLD, $XAU, $EUR, $USD
FLASH: Gold prices could still surge 20% this year as precious-metal investors and speculators are right to believe in a bright future for the commodity.
One international guru told Barron’s that he considers gold at current marks of just below $1,300 oz a “bargain.”
His price target for the year is $1,550. Spot gold was little changed at $1,270.46 oz Friday, Reuters reported.
The EUR, 20-year US T-Bond rates, and traders’ futures positions would all have to turn favorable for the metal if it is to rise, Barron’s quoted him as saying.
“A stronger EUR, relative to the Greenback, would make gold more affordable in that currency; lower rates would make it more attractive versus US bonds; and more Bullish speculators would put upward pressure on prices. All three have shown signs that they could boost gold later in 2019. Higher inflation also would help,” the report said.
He went on to day that he expects “the gold market to build up energy during the Summer.” Any breakthrough, he predicts, “is likely going to happen in October or November, and it would pave the way to $1,550.”
Have a terrific weekend