My Long Term Gold Price Action Expectations
Updated
Current affairs with the COVID-19 and the US Fed Interest rates already at zero. Government debt levels are at record highs...we are in a very bad financial crisis. Governments around the world (UK, US, etc have already passed massive stimulus spending packages. These packages are intended to jump-start the economy through the spending of money and increased employment.
Central banks in the developed world have already cut interest rates to near zero—that’s expansionary monetary policy of the highest degree.Taking it a step further, central banks have acquired stakes in toxic assets and bought hundreds of billions worth of bonds (quantitative easing).
Governments are propping up the “capital” markets with massive injections of capital and they are determining who is "too big to fail" and it will either step in during the debt restructuring process or let companies fail.
With the above being said the play is to print money and then use this to patch the hole in the lost income of most employees. Less endowed countries will not have the ability to continue to print or borrow at will. Printing at will leads to rampant hyperinflation. Borrowing is the only other option, but eventually lenders will refuse to lend against assets that are worth less and less. This leads to currency devaluation and currency devaluation will lead to the rise in Gold to fill the void as a currency of exchange that is not losing as much value as the dollar in most countries around the world.
I am expecting that we could see short term retracement but my overall analysis is that we will see Gold go as high as $3000+
Central banks in the developed world have already cut interest rates to near zero—that’s expansionary monetary policy of the highest degree.Taking it a step further, central banks have acquired stakes in toxic assets and bought hundreds of billions worth of bonds (quantitative easing).
Governments are propping up the “capital” markets with massive injections of capital and they are determining who is "too big to fail" and it will either step in during the debt restructuring process or let companies fail.
With the above being said the play is to print money and then use this to patch the hole in the lost income of most employees. Less endowed countries will not have the ability to continue to print or borrow at will. Printing at will leads to rampant hyperinflation. Borrowing is the only other option, but eventually lenders will refuse to lend against assets that are worth less and less. This leads to currency devaluation and currency devaluation will lead to the rise in Gold to fill the void as a currency of exchange that is not losing as much value as the dollar in most countries around the world.
I am expecting that we could see short term retracement but my overall analysis is that we will see Gold go as high as $3000+
Note
Gold is now $55 from my first bearish target. My anticipation is that this will be a liquidity grab to now push gold up to $2100+ with a strong fundamental catalyst before the end of 2020. Who knows, it could just be the US elections or some new Virus scare.P.S. if Gold begins to run to new highs above $2500 then my Bitcoin and top cryptocurrency targets will be a push to new all time highs!
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