Gold Is Going Back To $2000

Reuters has spoken. 

Gold is on the course for its biggest monthly jump since July 2020. On the other hand, the poor U.S. dollar seems to be comfortable on its trek down. 

The growing inflationary pressures are making the dollar less attractive and hedge assets, such as gold, more desired. 

Gold was up 0.1% at $1,904.34 per ounce last week. That’s a nearly 7.7% climb so far this month.

There are still upcoming events that will weaken the dollar. The most glaring of which is the proposed budget of the new administration. 

If approved, the budget will call for more money printing. That’s like pouring gasoline in a burning house. 

Then there is the covid strain that people refuse to listen to because we are simply sick of this pandemic. People think that if we don’t acknowledge it, it will go away. 

You know… like we did the first time. 

With the dollar staying weaker, crypto staying in its volatile happy place, people are turning to gold. 

Gold bulls now have their eyes set on $2,000. Stephen Innes, the managing partner at SPI Asset Management, thinks it’s going to go quite a lot higher.

The dollar index was headed for its second straight monthly decline versus rivals, while the U.S. 10-year Treasury yield fell to 1.593% on Friday, reducing the opportunity cost of holding non-interest-bearing gold.

The U.S. consumer prices also surged in April. That’s what happens with inflation. There’s more money in the market with more expensive commodities to buy. 

For as long as the Fed refuses to change its monetary policy in response to rising inflation, real interest rates will continue sliding ever further into negative territory. 

This is bad news for all of us but you can fight it with gold. 

Use gold as a hedge against all this economic turmoil and the ones to come. It is the only asset that’s truly global and has always been steady. It is so steady, even central banks are using it to protect them against the US Dollar. 

Share this post

Share on facebook
Share on google
Share on twitter
Share on linkedin
Share on pinterest
Share on print
Share on email

About Noble Gold

At Noble Gold Investments, we protect our clients financial futures by giving them a safe and easy way to invest in Gold and other Precious Metals. Whether it’s diversifying your portfolio with a Gold or Silver IRA, acquiring precious metals, or storing bullion in our Texas depository, our no-pressure agents can guide you through all the options available to you.

Recent Posts