As a Professor of Strategy, and hence a fundamental analyst with a passion for technical analysis, I start with a disclaimer. I have no personal stake or interest in Gold. I share my analysis.
Technically : Great buy for delivery - Gold has beautiful and solid support, it will rebound and touch new highs around 2000 in about 2-3 weeks. I suggest delivery as opposed to trading in futures that are unfortunately acting to reduce your profits while roll-overs happen each cycle. Long run I am clear, Gold will touch unforeseen levels on upside (just as Crude saw an unforeseen level on downside yesterday).
Fundamentally: Gold is your safest and the most lucrative bet. In about 6 to 9 months, as the worst come to surface, Gold should be $3000.00. The world has not yet factored in the new reality even half way, and the new reality emerging is far more grim than one imagines and Governments would like us to believe. Unless we have an effective vaccine, the world is not going back to normal. I see cycles of Lockdowns and exiting Lockdowns in a vicious cycle. The real panic hasn't set it yet, no bank has yet folded up, banks havent yet put restrictions of withdrawl of money yet, imagine the panic as it occurs. At the moment, some sectors as Hospitality, Aviation, and Luxury Goods (rather stated as discretionary goods and services) are close to folding up.
The Central Banks and Governments are forced to print currency. Natural and justified earnings of Governments through Taxes etc. is already and will be affected drastically. Introduction of new billions of dollars of cash that Governments will borrow is necessary to fight the pandemic, and keep a remote semblance of normal functioning, and stimulate the economy. Unforeseen levels of Printing will lead to unforeseen levels of lowering value of currency. Lowering value of currency makes a bread (symbolic of necessity) more expensive. That is inflation, and with no growth, you know what it means.
Gold will truly prove Gold !
Buy and hold !
Technically : Great buy for delivery - Gold has beautiful and solid support, it will rebound and touch new highs around 2000 in about 2-3 weeks. I suggest delivery as opposed to trading in futures that are unfortunately acting to reduce your profits while roll-overs happen each cycle. Long run I am clear, Gold will touch unforeseen levels on upside (just as Crude saw an unforeseen level on downside yesterday).
Fundamentally: Gold is your safest and the most lucrative bet. In about 6 to 9 months, as the worst come to surface, Gold should be $3000.00. The world has not yet factored in the new reality even half way, and the new reality emerging is far more grim than one imagines and Governments would like us to believe. Unless we have an effective vaccine, the world is not going back to normal. I see cycles of Lockdowns and exiting Lockdowns in a vicious cycle. The real panic hasn't set it yet, no bank has yet folded up, banks havent yet put restrictions of withdrawl of money yet, imagine the panic as it occurs. At the moment, some sectors as Hospitality, Aviation, and Luxury Goods (rather stated as discretionary goods and services) are close to folding up.
The Central Banks and Governments are forced to print currency. Natural and justified earnings of Governments through Taxes etc. is already and will be affected drastically. Introduction of new billions of dollars of cash that Governments will borrow is necessary to fight the pandemic, and keep a remote semblance of normal functioning, and stimulate the economy. Unforeseen levels of Printing will lead to unforeseen levels of lowering value of currency. Lowering value of currency makes a bread (symbolic of necessity) more expensive. That is inflation, and with no growth, you know what it means.
Gold will truly prove Gold !
Buy and hold !