Precious metals are the best performing asset class today with gains ranging from 1% to over 2%. The US dollar weakness can be named as the primary cause behind today's rally with US currency being the top laggard among majors today. Upcoming US presidential election and Brexit Deal dilemma can keep the demand for precious metal higher. We already broke 1915$ resistance level which was a support level as well for a long time. Another break through above 1973$ can take Gold back to all time high again.
Reminding you that recently CEO of US Global Investors came with a claim that Gold prices could explode more than 90% and hit $4,000 in the next three years as central banks show little sign of reducing monetary stimulus.
Frank Holmes, CEO of US Global Investors told CNBC Monday: "It's quite easy to see gold going to $4,000."
Holmes said rising stimulus being enacted by central banks is causing gold to soar to unprecedented levels.
G-20 finance ministers and central banks are "working together like a cartel and they're all printing trillions of dollars," he added.
Expansive monetary policy is usually supportive for gold prices, as it tends to drive down borrowing rates.
As gold does not yield any interest of its own, when borrowing and savings rates are low, investors lose out less from holding bullion than they otherwise might when rates are rising and other assets offer more attractive yields.
Reminding you that recently CEO of US Global Investors came with a claim that Gold prices could explode more than 90% and hit $4,000 in the next three years as central banks show little sign of reducing monetary stimulus.
Frank Holmes, CEO of US Global Investors told CNBC Monday: "It's quite easy to see gold going to $4,000."
Holmes said rising stimulus being enacted by central banks is causing gold to soar to unprecedented levels.
G-20 finance ministers and central banks are "working together like a cartel and they're all printing trillions of dollars," he added.
Expansive monetary policy is usually supportive for gold prices, as it tends to drive down borrowing rates.
As gold does not yield any interest of its own, when borrowing and savings rates are low, investors lose out less from holding bullion than they otherwise might when rates are rising and other assets offer more attractive yields.