News) Another bullish gold price update comes from TD Securities, which is now projecting a move to $1,800 an ounce and then a jump to $2,000 near year-end.
Gold prices rallied along with risk assets this week. At one point, gold even neared $1,700 an ounce. At the time of writing, April Comex gold futures were trading at $1,636.40, up 0.18% on the day.
There are many drivers supporting gold at the moment and once the COVID-19 outbreak peaks, constructive price conditions will remain, said TD Securities head of global strategy Bart Melek said on Thursday.
“Normalizing liquidity conditions, negative real rates, low cost of carry and concerns surrounding fiat currency debasement, not unlike those present during the post-GFC period, likely mean gold price could move toward $1,800/oz in the not too distant future,” he wrote. “A move toward $2,000 is also a distinct possibility into 2021, as the global economy normalizes, monetary contentions remain loose while fiscal deficits surge.”


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