Gold should continue to push higher.
All as investors bet global central banks won’t tap the breaks on much-needed economic stimulus. In fact, “The global economic recovery will still require further aid and gold prices should still be supported over the medium-term,” wrote Edward Moya, senior market analyst at brokerage Oanda, as quoted by MarketWatch.
In addition, in a world of zero interest rates, the price of gold could rally as high as $3,000, says Bank of America. “As economic output contracts sharply, fiscal outlays surge, and central bank balance sheets double, fiat currencies could come under pressure. And investors will aim for gold,” the analysts said, as quoted by Kitco.
Elliott Management’s Paul Singer says gold is “one of the most undervalued” assets available and that its fair value is “multiples of its current price.”
Greenlight Capital’s David Einhorn says, “We believe the implied negative interest rates are bullish for gold and for unlevered real assets with pricing power.”
JPMorgan Chase advises investors to hedge their risk with gold.
Coupled with plenty of economic uncertainty on the heels of the coronavirus threat, tensions with China, and even upcoming U.S. elections, gold prices could accelerate higher.
It’s also no wonder Bank of America just raised its 18-month price target to $3,000 an ounce.
Others believe gold is on the cusp of a very long bull market that will send it to $5,000 or more.
Some of the top gold stocks to consider include:
- Barrick Gold (GOLD)
- Gold Fields (GFI)
- B2Gold (BTG)
- Kirkland Lake Gold (KL)
- VanEck Vectors Gold Miners ETF (GDX)